About Debts in Business

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Listening to motivational speakers over time, you are soaked with the notion that you should totally avoid debts when starting a business venture or looking to make an investment, I once agreed with this notion but growing up and doing business or investing I realized that there is so little you can do without a loan except you have enough capital to start up on your own.

Lack of capital can leave you in one spot for so long a time and weather you believe it or not, a little money well spent would have moved you a few steps closer to your dreams.

I would recommend this approach to collecting loans for your business.

  • You should get only the amount you need as stated by your calculations for the execution of what ever project you have. If in time the funds are not sufficient then you can go ahead to ask or seek another.

  • The loan should be payable weather your business succeeds or not. You should have a well laid plan to make returns if your business fails or stalls.

  • Ensure to only collect loans from parties you can truly party with and do not agree to outrageous terms and conditions simply because you want to get your hands on money.

So many billion dollar businesses run on super large debts but have billionaire CEO's. Take lesson from this. If your dream is viable, push for that loan or funding but if not please seek out your own capital to work with.

N/B everything said is from a personal perspective.

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