Quote from: Xcode7 on Today at 03:10:04 PM

Quote from: tottong on Today at 01:10:42 PM

There is no problem taking a loan to improve the business we run because if we don't dare to take risks it will be difficult for us to develop.
Taking out a loan for consumption needs or just for lifestyle is a mistake that must be avoided and most people misunderstand the meaning of a loan.
Most entrepreneurs definitely have loans and most of them develop their business using money borrowed from other parties. If there is no calculation and we are too hasty in taking out a loan, we will be faced with problems.

Loans are productive, there is no problem as long as we understand the business we are running and the use of borrowed money will be much more targeted.

I agree with that and in fact there are many businessmen who have done that, whether for large or small businesses, of course they will use loan money to further enlarge their business so they can get bigger profits, that is a normal thing in business and I think they are not stupid people.
In fact, they are business actors who are afraid of the risk of taking out loans and it will be difficult to develop if they do not have large capital.

And indeed everything comes back to calculations, even though the risk is still there, but if you want to develop a business with loans, I think it's quite worth it.

It cannot be denied that in business debt is unavoidable, I think it is not a trap but rather an encouragement that makes the business grow. So in my opinion it is completely irrelevant if the person who owes the business is a fool.

If reviewed in more detail, debt in business can be used as a source of financing for business growth. By borrowing from suppliers, companies can expand their operations, increase production, or take advantage of larger business opportunities.