General Starting a new business with loan?

 

Danny

New Comer
Do you think that it's something wise to start a new business with bank loan? My brother wants to start a new business but his capital is not complete. What should he do?
 

Maxwell

New Comer
If you can avoid it, I would advice towards that. I'm not freely comfortable with bank loans for starting a new business. You can get it to support an already existing business but not start a new one from the scratch.
 

Ash

Active User
As Maxwell said, if you can finance it yourself, it's better. But if you're confident in your idea and you're able to get a loan based on it, I would say go for it
 

Dave

Member
Do you think that it's something wise to start a new business with bank loan? My brother wants to start a new business but his capital is not complete. What should he do?
This comes from someone (me lol) who ran their own business for 20 years, I'm retired now and far better off than I was when working for myself. It's a dog-eat-dog world out there in the land of the self-employed. It's long hours, no holidays and at times things can dry up like a desert and then an unexpected flood can happen.

I would advise your brother to check and see if their are any grants available for start-ups. Right now is a difficult time for businesses as we are emerging from the recent Pandemic and with the cost of living crisis biting hard it may be difficult to get a business off the ground. So, opting for a bank loan may not be the wisest course for funding because if the business can't get off the ground the loan would still have to be repaid. It's a risky time at present to start up a business, the exception would be if it was a service that is currently undermanned and in demand.
 
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