In terms of borrowing, it is necessary to think about its return, and it is very necessary if it is difficult to return it, you will no longer be able to get the loan you need, and not only that, maybe your name will be blacklisted by the bank or loan company, it is necessary to anticipate all of that before it actually happens.
We have to think twice before deciding to borrow funds from banks and companies because both apply high interest and they set collateral requirements for loan repayment guarantees, most business people often deal with loans because they use them for business needs and they have estimated monthly income to pay off the loan.
I am not very interested in bank and company loans, except for asking for loans from relatives and friends if needed for business needs and emergency needs, but I hope never to borrow from anyone and I will save some of my monthly income for emergency needs.
I see business people who dare to take loans, either to banks or people close to them, have no other choice, sometimes they want to save the business that has been pioneered, and there are also those who want to start their luck to start a new business. In my opinion, borrowing from friends or relatives is a better step, but you still have to have a written agreement, as proof if something unwanted happens in the future. Meanwhile, borrowing from a bank, I think has a very big risk at this time, we really have to make calculations as detailed as possible so that we can pay it off every month. Of course, we also have to see how much interest is set, to asking for solutions if we experience delays in monthly payments. We realize that business competition is currently very tight, and we should not take too big a risk that it can result in loss of collateral.
However, everyone certainly has their own understanding and perspective, as well as a tendency to choose to borrow from a bank or other parties. In essence, it is better to choose the one with a lower risk, because we cannot guarantee that the business we pioneer will progress as expected.