Pros & Cons To Take Startup Business Loan
DON MCGONAGLE
Taking our company to the next level
Every business owner needs a certain amount of money to start its business. At that time, it is better to take a business loan rather than touching your own savings as per your loan eligibility. We all know when we start a business, we take a risk. So it is always wise not to exhaust all savings in starting a business, some savings you need to keep with yourself also.
Taking a loan completely depends on you. Some loans may be more profitable than others, depending on the amount you borrow and what you plan to do with it. Will it be enough to improve your bottom line? Or will that money just be going towards paying interest charges? consider all the aspects towards you , if the answer is positive then taking an business loan is good for you !
MAIN BENEFITS OF BUSINESS LOAN
Main Benefits of Business Loan
ACCESSIBLE AND CONVENIENT
FLEXIBILITY
NO COLLATERAL REQUIRED
Accessible and Convenient
BENEFITS
According to convenience, promoters offer different repayment options. They may work out a repayment plan based on the business cash flows to avoid facing any kind of financial difficulties in making repayments.
Flexibility According to the requirement, the owner avails the loan. Many companies are opting for term loans to meet the fund requirements in the short to long-term. They may choose for working capital loans to meet the operational expenses of the business.
BENEFITS
No Collateral Required No income or collateral documents need to submit to avail the business loan. One can opt for business loan against the property or land must be owned by the borrower for a 100% loan disbursement. For a small business start-up, business loan really helps to cope up with the business requirements and in sustaining the progress.
You basically have these options to fund a startup: Bootstrap
Debt
Get a grant
Your own money or you get customers to buy fast enough to cover your expenses
Take out a loan – several genr eof this from straight loan to convertible debt (converts to equity upon trigger event)
Free money form somewhere that takes no quity and does not have to b paid back, no interest charged (sometimes strings attached)
Pros and Cons Of Business Loan PROS..... 1 2
You’ll Have Money to Start Your Business You Can Retain Business Ownership
CONS...... These Loans Can Restrict Cash Flow Your Personal Credit Might Be Put at Risk
3
You Can Protect Personal Wealth
If you need it to start a business from scratch, like $0
4
If you are using the loan to make more sales
Your cash flow is shaky
5
If you are using it to buy more machines or inventory or to expand to a good location
If you use the money for partying instead of making more valuable goods and services for your customers
CONSLUSION First Consider all the things before applying a business loan. There are some aspects to pursuing a startup loan, such as issues with ownership, eligibility, risk to personal credit, and the cost of repayment. Don McGonagle – However, qualifying for a small business loan could mean having money to start a business without the burden of owning it for financial or familial reasons. Investors involved in such an endeavour are likely not interested in taking away your share of the company you’re trying to build.