Quote from: Crypto Library on August 02, 2025, 08:00:06 PM

Quote from: tygeade on August 01, 2025, 03:09:00 PM

That is the risk you take when you are a company. Lets say that I can take out a 20k loan today, I mean I can, banks do give me that much loan, I would cover all my personal debt for 5k, and the other 15k would be ok for me to start a business. That means, if I do make enough money with my business, I will not only pay the debt back, but I would also profit.

The "risk" however, is that, what if I do not make any money from the business? What if I lose? Remember, even the huge companies with cash, ends up getting a loan, but if they fail to make money, even if they do not bankrupt, shareholders will sell their stock and that would drop the share price, which would ruin a company. So always try to pay your loans back, and make a profit, otherwise, it's a huge risk.

And I won't disagree with you, but we also have to remember that business means risk, and it's also true that no risk, no gain. I'm not saying that you should blindly take a loan from the bank and use it to start your new business. Rather, I would say that if you are running a business and you see that an extra fund investment will expand your business even more, then after doing the analysis, I would consider taking a loan for the best.
And I never prefer to take a loan to start a new business, but rather I support taking a loan to expand a business that is already starting, even some may not be successful because not everybody wins every time.

Most of the businesses started with a loan. And it is your strategy how to make profits out of it. And a lot of them actually emerge as successful. So there's nothing wrong taking a loan if you have a good feeling that you will hit it off. If you have a good feeling that you can manage a business out of a loan, why not? But for me, don't take a huge loan at the start. If you are just starting, better use small funds at first. And if it is already earning and you want to expand, that's when you can take another loan but as much as possible, pay for the first loan first. So you have a good credit score. And can take a much higher amount of loan.