I currently work in an mnc. For some time now I have been thinking about starting my own business and I am considering going for a loan from the bank. But I am worried if it is the right thing to do.

I want to use the money to buy a truck which I will attach to a warehouse for better management. Initially I wanted to go for a van but the warehouse people advised me to go for a truck. Their reason being that the profit I'll make from a truck will be enough to cover expenses and challenges faced e.g police, lastma, vio, etc.

I intend paying back the loan from my salary and proceeds from the business.

Your candid advice and suggestions are highly welcomed

Since you will pay from your sallary, i think its fine. else the business may not raise the money quickly and saving is difficult for salary earners.

I won't advice you to do such looking at the current economic crisis (dollar, fuel, inconsistency of salary), they can mar the payment of loan thereby making it the worst.

My Opinion though.

Much as I would advised you pick the loan using your salary as a collateral, I would take exception on the nature of business you intend going into.

1. Considering the nature and condition of our road network, how do you intend to mitigate against risk such as accidents, though I pray not for it?


2. What is the payback period for the loan and can the pay from both sources (salary and truck) offset it within the loan period?

3. The interest charged on loans currently hooves around 29%p.a, can you sustain it?

4. In addition to the loan, you will need yo take an insurance cover which also has to add up to the total cost in addition to maintenance.

5. Wish you all the best!!!

You are good to start the business with the said loan because you are a salary earner & have backup otherwise, starting up a business with loan is CAPITAL NO

I am here to Learn.

Look before you leap....
The banks that gave loans to aregbesola don't care if crude oil price is -$30.....
Bros be wise..

The guy below me might have an idea.

Dnt try it biko!

starting a business with loan is not a bad idea but starting with bank loan is a risk one needs to be careful about.
1. What is the security on your present job
2. Can you cope with the interest rate from bank
3. No business yields proceeds immediately so are you sure the load wont be too much on your salary
4. Running cost: This is one vital part of business most people neglect. The money you pump into the business alone is at times more than your initial capital cos you keep pumping it in till the business stabilizes
5. Please don't trust on this company workers when it comes to haulage, there is a lot more homework to be done.
In all, please consider the loan carefully cos to collect money is sweet but pack back is never easy.
Thank you

I think even if the business fails, he would have learnt a lot. its still better to try and fail than not to try at all. since his sallary can pay back the loan.

my broda bank loan 4get am. It nt the best option

my own piece tho maybe foolish but it I think it's better you have monthly contribution which will be from your salary and use it to start the business rather than go for bank loan that anything can happen. it's a business so it either you gain or loss.

Think about it my broda. Wake up in the midnight and think, you will get the inspiration on what to do.


Peace!!!

I hate loans
I won't be able to sleep well

Yes. Only if he's going to invest it in footbll betting


[size=24pt]Kidgod
[/size]

my advice to u is these Go on with the loan but do inform the bank to b deducting at least 1/2 of ur salary monthly or every two months. it might b difficult but u will smile at last

if u r not going to actively monitor ur investment. ...its dangerous to use a loan to facilitate such business because at d end of d day d business might crumble and u r still left with debt to pay...




think wisely

Always do business within your capacity...



"Aim small, Miss small"

using loans to start logistic/transportation business. Especially when you are not the driver in-charge. my brother don't try it. You can do it if you will be the one to drive or you will be the motor boy.

A very big YES. As long as you a permanent staff and not a contract staff. The bank will deduct it from source as soon salary is paid. They do it in a way it won't stress you. Don't do a short term loan but a long term loan, although the longer the higher you pay.

I am also into trucking biz.

Please PM let's talk bizness.

It's much better to scale up your operations as the business expands but in the case of a capital intensive business loans should be last resort, seeking partnerships is an option.

**by loans I take it that you mean that which is sourced from the bank

i say no! it is not wise

It is a good idea cos it is not easy to raise such huge capital on ur salary.life itself is risky and this biz is a calculated risk u can take

If it is a single digit interest loan, then yes, it is a risk worth taking. Double digits? i say no.

If its a bank loan then u need a collateral. Banks can't use ur salary as 1, it wud be difficult 2 see u collecting de loan.

Steroid - - - - - Simply don't overgear your financial muscle. All business structures, have an element of risks attached.
NB : NO RISK - - - - NO REWARD!!!!!

It's normal to take risk, but let it be a calculated one.
How much loan are we talking about? What is the interest rate and the tenor?
My problem is paying back with the proceeds of the business and your salary at the same time. If the business cannot take care of itself, then I feel it's not worth it.
My opinion

Of course, you can start with loan If you are sure that there will be no any problem that will occur, and that you will pay the money swiftly with your salary.

A Risk Is Worth Taking If The Reward Is Justifiable

OK!