the money guides

5 reasons why you should NOT take out a business loan

Categories: Debt, Loans/Lending,

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.

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Copyright © Chris Lowe, Colobus 2021

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