Having a business of your own is very good because you’ll be getting daily income to sort your bills. So many people use different sources of capital to start up their business, some people go for loan as a source of capital to start up their business.
Is it really advisable to collect loan and start a business? Somehow yes somehow no. It is advisable to collect loan and start a business when you know that he will be able to repay the loan without stress. Also, before collecting loan to start a business you must be sure that the business will yield high profit.
Then in the no aspect, if you’re not sure of the foundation of your business, I advise you are void getting loan to start that business so that you won’t get into unnecessary debts.
I don’t advocate using loans to start a business. I know that a lot of times we don’t have money to start a business of our dreams especially if it is capital intensive which made one go for loans. But it might not be the right option.
The thing is that loans come with high interest that might take away the profit of the business. It might even be a struggle for one to pay back at the end of the day
Make loans for start up businesses, actually not recommended by financial experts, especially if you are still very novice in the business world, you have no knowledge of business, financial analysis, market analysis etc. and you also have no experience, what will happen unless you going bankrupt. But if you have a strong determination to run a business, then you can raise capital first or make loans to family such as parents, siblings etc without interest so that you have money as the minimum capital you need to operate your business.