Allegrif
New Member
A lot of people start up their businesses on borrowed money. I've never really understood this though, it seems like a really risky strategy. Have you done it, and if so, did it work out how you intended in the end?
St Rhenium
New Member
Well you need a solid business plan to be accepted for a loan like this, and the banks know what they're doing. If you have any risk of falling through, you'll be unlikely to get the loan in the first place. So ultimately, yes, if it's well-planned there's absolutely no reason this shouldn't work.
Zarostulus
New Member
Yeah, I can see your concern, but the bank will sniff out any worries to protect their money. If they're not happy, there's no loan.
Allegrif
New Member
There still has to be some risk though - there's a reason people end up in debt with the bank: they borrow when they shouldn't have?
Zarostulus
New Member
I suppose so, yes, but these are typically the people who are extremely irresponsible with money.
C
cruzo
New Member
Yes I know what you mean when you borrow money you need to think how to make enough profit to take it back. I would rather to start with something small than to take a risk with borrowing cash.
MarkB
New Member
Staff member
Used correct debt can be a very useful tool for small, medium and large sized businesses. You should respect debt but certainly not be afraid of it. As for whether you should use a business loan to start a business, I would say how badly do you want to start the businesses? Many successful businesses were founded on debt and while in a perfect world we would all be debt free, debt in business and looming loan repayments do help focus the mind somewhat - especially when you are looking to put food on the table for your family.
S
SurpriseButtsecks
New Member
Well, I know a lot of people who started a business by taking a loan. Guys here is absolutely right - mostly banks don't give up money so easily. And so, if your business plan is not convincing enough, they won't give you money. But there is another option. One of my friends had an insane business plan - he wanted to buy some REALLY rare stuff from China and resell it in California. I don't remember, what it was. The point is - he didn't succeed with the banks. Then he contacted the Expert Payday Loans company and those guys gave him money. Of course, his business collapsed and now he's deep in debts. But he got the money. If your plan is not as risky as his was you will succeed.
J
John Sanchez
New Member
If you a have a plan and written, and you show them what are going to be your estimated sales, maybe the bank will give you the loan.
Business Upside
Member
Starting a business by taking a loan can be a good idea, if there is a plan of what would be sold to make profit out of it. Any person can apply for a loan to start a business.
