Re: It's not smart to borrow funds and Pay back

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.

As a businessman then bank loans would really be your last option if you wont really be able to borrow into those people whom you do know on which into these bank loans where interest is really that low compared into those financing on which their interest per month is really that high which if you do compare it out on banks which usually plays around 0.8%-1.5% basing up on my experience on which its really that too far off
into those financing having that 5% or more.. How much more into those people or lending that having 10-20% per month? You would really be finding yourself getting drowned with debt because you are really just that basically making yourself that paying up those huge interest. As for business man point of view then bank loans would really be able to save you up but we do know that requirements and pre-requisites on getting a bank loan is never been easy. You would really be needing for yourself to be that get qualified before you would be able to get one.

Everything that do talks about getting a loan and for the sake of making some business expansion or any other related thing then it would really be worth but getting up some loan
just for other non sense purpose then you are really that putting yourself on such potential trouble. How much more into those who doesnt have the plan on repaying those loans? Tongue