Should a New Business Take On Loan?

[Spencer]

There are different reasons for taking out debt as a business owner but it is always important to only take on debt after youru business has established a degree of profitability, starting right off the bat and just chasing profitability is a fool's errand, I don't think any bank can give out loan to a business that is not well established in their markets.

But after building a proof of concept, a loan can be taken to hasten things up, many investors will partner with and give you money because they want to make more with their own capital.

What's your opinion of taking out a loan as a business?

 

[Mika]

If you do not have any money, if you cannot raise capital from your friends and family, but you have a great business idea and you have skills and knowledge to operate on the idea, what option do you have other than taking a loan? However, not all businesses can be successful so you should always have a plan B. In other words, you should have resources to pay back the loan in a situation when your business fails. It can be risky but it can also be a great way to start a buisiness