do you believe in loaning money?
By sandragellar
@sandragellar (440)
Philippines
March 7, 2009 12:45pm CST
do you believe that borrowing money can help you make more money? or do you believe that borrowing money can lead you deeper into debt?
personally, would you borrow money to start a business? or do you earn enough money (without loans) before starting any kind of business?
when it comes to loans, what are your dos and donts?
3 responses
@buggles64 (2709)
• United States
7 Mar 09
Yes, I believe that borrowing money can work for you, especially if you are starting a business that there is a high demand for. you have to offer a service that the people want. Right now, I would think that a $1 store business would be something good to get into, as more and more people are flocking to discount stores with the economy in the shape that it is.
@sandragellar (440)
• Philippines
8 Mar 09
i see a lot of one dollar stores. perhaps they are doing great. ^_^
i'm so afraid to borrow money from banks. do you have any experience regarding bank loans?
my friend says that if you spent the money on the business alone, the bank will just repossess your business (and nothing else) if the business does go bankrupt. is my friend right?
@buggles64 (2709)
• United States
8 Mar 09
Presently, I do not have any positive experiences that I could share regarding our fine financial institutions. Having a business loan is similar to having a mortgage on a house, if you can't pay, they'll repossess the business, put it up for sale. If you can't make the payments on the business loan, you should probably try to sell the business.
I would love to run a dollar store business if I had the financial backing to have such a business, but that would be way down the road. Right now I'm to busy paying off personal debt.
@sandragellar (440)
• Philippines
9 Mar 09
i guess that's right, maybe it's like a housing loan. they take away the house if you can't pay them back. :(
thanks for your input! i will try to look into more businesses like it.
@kris182_2000 (5475)
• Canada
7 Mar 09
Done right, it can work for you, but you have to know what you're doing.
If you're the lender, you're expecting a return on your money, so you have to make sure what you're investing in is going to succeed.
@sandragellar (440)
• Philippines
8 Mar 09
that's scary! if it doesn't succeed, you lose your investment!
my friends say i shouldn't be scared to borrow money from the bank. they say that if i spend the money i borrowed on the business ALONE, i won't lose anything. they say that if the business goes bankrupt, the bank will just repossess the business itself and nothing more. so in the end, i don't lose anything.
is this true? is it true that if the money is spent entirely on the business and the business goes bankrupt, then they won't repossess anything else aside from the business itself?
the principles behind bank loans are not entirely clear to me... lol ^_^
@dvrtmcc (176)
• Eritrea
7 Mar 09
It is good thing If you have many money and then borrow it to someone but still it is not safe way. Becouse of changes on the markets money can be affected by it.
