What do you think about getting a loan to start a business?

[Joshua Farrell]

Not sure if I would personally take a loan out to start or kickstart a business, but if I did, i would want my own income to be able to handle the potential of it failing in a year. All info I have heard and read, states that if people plan it out appropriately, you should have enough to pay yourself a modest income for the year, and cover basic expenses at the same time, regardless of success.

 

[InMyOpinion]

My boyfriend just got a loan for his new business and honestly I don't think it's a bad idea if you've really thought the business through and stay realistic. Usually the opening of a new business is the most expensive time because it's when you have to buy a lot of one off purchases and you aren't really getting any money in from your new business.

In my boyfriends case I really didn't have an issue with him getting a loan for the business because he has been thinking and working on this business for years and years and is very clear on what he needs to do/get done in order to start his business and work to get it successful. He needed to also get a patent done, buy some equipment and make some models/protocols of what he will be selling. One of the reasons I was so comfortable with my boyfriend taking the loan is because he has been very open and honest with me on what he is going to be spending his money on and what he needs to have/get in order to start selling his products as how much everything will cost. I also believe in his business a lot and feel like he will be very successful with his business.

I think before anyone even thinks about getting a business loan they should have a business plan in place, know exactly what they need in order to start/open their business and be realistic as to when they will be able to pay off the loan and when the business will start to make an income. I think a lot of people start a business without having a lot of direction or knowledge as to what it will entail to create a successful business and so that's why most businesses fail. Getting a loan isn't necessarily a bad thing, but you also need to be realistic and honest about whether or not it is a good idea.

 

[Matthew]

If you open a business in the correct way, loans can be beneficial for the process as start up costs are incredibly expensive. This is where having proper guidance and direction can be beneficial. For instance, an LLC will allow your personal assets to remain mostly separate from your business assets. If a loan is being considered, using the right types of loans are paramount. I wouldn’t take out a personal line of credit to fund a business expense.

 

[Ravenfreak]

I would highly recommend getting a business loan if you're wanting to start a huge business and need money, as long as you have a good plan set up to make your business successful so you can pay that loan off. I also recommend having a financial advisor to help you out along the way too.

 

[Flower]

Loans can be very difficult especially for businesses that lack a solid plan and a proper risk management in place. Taking a loan for a business that lacks a proper plan is a recipe for disaster. Other than that, it could be a lifesaver for your business.