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Small Business loans  


Active Member Subscriber
Joined:2 months  ago
Posts: 17
December 6, 2017 2:41 am  

 Small business loan is an another way of  financing your business, although theses type of loan is applicable only to  small variety of business due to the capital limit that it may offer. One can get loans form banks, credit unions and online lenders. In making such loans one should take a look on its interest rate since some lenders have a high interest that might put you in a bankruptcy. Some small business loan requires collateral in assurance that the borrower will be paying his debts or in any case of non payment the properties or any of such can be seized or collected. Honestly I really don't like borrowing funds for my business in this kind of ways since I guess it will not make any profit since the earnings that you will received from your business will goes only for the payment of interest that you borrowed to a certain bank or credit unions.

Eminent Member Subscriber
Joined:2 months  ago
Posts: 20
December 6, 2017 9:26 am  

Business is really risky and you need courage to face these risks. Getting a loan to finance your business could make you hesitate and waver but be strong and wise. Creditors are just trying to be finicky since they're lending you the most liquid asset which is cash. They just wanted to make sure that you have the ability to pay so they won't record a loss. You were thinking that your interest will consume your profits but what if it's the opposite. Make your simple calculation, you can use ratios to make sure if your interest really overwhelms the profit. If the result is unfavorable I wouldn't blame you for retreating. But let's not be dependent on loans, you could still generate fund using bootstrapping. What is bootstrapping, you say. Well it's about getting into a business or out of a situation by using the existing resources. If you want to learn more about bootstrapping you could turn to the link below where it is further elaborated.


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