the money guides
5 reasons why you should NOT take out a business loan
5 reasons why you should NOT take out a loan:
- Cost – you’ll have to pay interest and fees.
- Repayment – loans must be repaid. If you don’t, you could lose your business (you could also lose your home).
- Priority – in troubled times, and all businesses hit troubled times, lenders come before employees and shareholders. That means that when things are difficult, lenders take priority over you.
- Stress – owing money is stressful.
- Credit score – every time you take on debt your credit score is affected.
There is only ONE reason you should take on a loan:
that is, if your project / business will be able to profit from doing so, and that means either making or saving more than the loan costs you.Copyright © Chris Lowe, Colobus 2021