Of course, borrowing can be a good thing and a solution if the goal is to make money, such as starting a business or becoming an entrepreneur, and also for investment if the investment has the potential to generate profits and you have expertise in that field.
However, it's better to borrow if you don't have sufficient capital, and the loan amount should not exceed your existing capital. And whenever possible, borrow after you've made every effort to increase your capital. If you're still short on capital, there's no harm in doing so if it's a solution. This goal is to reduce the burden of debt payments compared to the profits you generate from the good goals I mentioned above. You also have the ability to repay the loan if your profits are small, or even nonexistent, because we never know what will happen in the future, and this must be considered and taken into account.
The reason I am saying this is because I have seen many people who have good skills and knowledge to start a business but have faced losses after running the business. Maybe their luck did not work here or due to political pressure, many people have faced losses in business or have to close their business. In this case, many have had to sell their residence or property due to the pressure of a large number of loans. And that is why I am saying this in this case that while taking a loan, the amount should be a normal amount that will not put you on the street if the situation gets worse. Because I have seen that due to the covid-19 pandemic, many businessmen have gone on the street for loans.
Yes, if
thatit's
due to the
case, coupled withfactors you mentioned or the COVID-19 pandemic, you're right. Everyone does it because they have no other choice. Some are forced into bankruptcy and debt for various reasons, such as borrowing to pay debts, pay employees, and other reasons, depending on their business and circumstances.
However, under normal circumstances, as I mentioned, it's all for the best. I've been
therethrough it myself, and what I call debt is nothing more than seeking available capital by finding other ways to minimize the amount of borrowing
requiredneeded, such as selling something
of valuevaluable or other ways to raise capital. And if that's still not enough, a loan is the best solution, so try to avoid debt as much as possible. If that's still not enough, and perhaps only a few percent are left, say 35% or 25%. And that's a small loan, and you definitely have the ability to repay it because low interest rates allow for higher business profits after you've paid off the installments.