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What are the risk involving on loan investment ?
I want to start up a business, but I don’t have enough capital to start up the business.
I want to apply for a loan to use as an starting capital to build the business.
What are the risks involving in doing this ?
There are so many risks involved investing with loan. It really depends on the kind of investment you have in mind or the kind of business you want to venture into. You may have a very good idea or a very perfect investment idea. But at the long run, you still find it difficult to grow the investmenRead more
There are so many risks involved investing with loan. It really depends on the kind of investment you have in mind or the kind of business you want to venture into. You may have a very good idea or a very perfect investment idea. But at the long run, you still find it difficult to grow the investment and settle the loan. So I’ll strongly advise, we should avoid loan when investing to avoid lose. Instead of taking loan for any investment, we should hustle hard and use the money to start up our investment.
See lessOh my God, investing with loan money is always heartbroken my brother, Investing with loaned money can be deeply risky if your investments don't perform well, you might struggle to repay the loan yourself, this may lead to financial difficulties. I don't advice someone to invest with loan money, it'Read more
Oh my God, investing with loan money is always heartbroken my brother, Investing with loaned money can be deeply risky if your investments don’t perform well, you might struggle to repay the loan yourself, this may lead to financial difficulties.
I don’t advice someone to invest with loan money, it’s generally wiser to use your own funds for investments to avoid this kind of risk.
So my guy, if you don’t have your personal money, don’t invest.
See lessInvesting with loan money sounds so scary to me. Maybe I have to learn to to deal with high risks to be able to understand this. What if the business didn't flourish as proposed. What if it didn't survive at all. You should ensure personal capital or savings is more compared than loan when establisRead more
Investing with loan money sounds so scary to me. Maybe I have to learn to to deal with high risks to be able to understand this. What if the business didn’t flourish as proposed. What if it didn’t survive at all. You should ensure personal capital or savings is more compared than loan when establishing a business. Don’t go and get a large sum from the bank. It’s very risky.
See lessStarting a business with a loan is highly risky. This is because you don't really know the fate of the business and therefore have no guarantee that you will pay back the loan. This can easily lead to default in the instance that the business does not become successful as you hoped. Moreover, the prRead more
Starting a business with a loan is highly risky. This is because you don’t really know the fate of the business and therefore have no guarantee that you will pay back the loan. This can easily lead to default in the instance that the business does not become successful as you hoped.
Moreover, the pressure of paying back a loan can be so intense that you lose focus in running your business properly. You will be so eager to pay back the loan and that will make the business take loan to break even.
In the event that your business is your only source of income, you will struggle with paying your bills while having to clear the loan. It would be better if you started business with your savings or from the help of family and friends.
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