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Starting business with loan.
- Thread starter Kirubel
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If you are a business expert and experienced, there is no problem if you build a business with loan capital, but if you are a beginner, you should abandon your intention to build your business with loan capital.
Good suggestions, yeah for beginners and for those who are new to business world its hard for them to start business with loan, but like i said in my country the government gives loan for freshly graduates in order to start business.
In general, the credit provided by the government without collateral to new graduates or small entrepreneurs is soft credit, with limited or relatively small loan amounts, with low interest rates. If you already have a promising business idea, you can take a soft loan from the government to run your business.
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I would not really advice anyone to start any business with loan though. Cause the truth of the matter is that anything could go wrong. Then again the business might not start generating profits immediately. In a situation like this, how do you pay back the loan?
In general, the loans provided by the government are soft loans, not large, with very small interest, long and easy installments. The first loan is no more than $300. and then the loan can increase if the installments run smoothly and the business grows. So there's nothing wrong if you have a potential and promising business idea to take a soft loan from the government to run a business with small capital and little risk.
I think for this you need to have a very detailed and realistic plan because it can cause you a lot of problems if such a business fails and you can never start again. If you manage your money properly, it can be a good idea
In my humble opinion, it is not a good idea to start a business by taking out a loan, especially if you are new to the business world. If your business fails and you have started it with a loan, it will be tough to pay back the money you borrowed, and you might have to take out another loan to pay off the first one. That can be a huge problem.
For me l have a bad experience with the loans. It's better to use your own money as the business capital for that matter. Most business loans are highly interested rated that cannot make a profitable business.
i don't really like the idea since you it comes with interest payment thsy sometimes is high but if you can't get funded any other way one can go for it
