no

Your advice: what can someone do with N500, 000:00 that can be productive in a short run investment? Please help...

lexy070:
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.

Wrong information, Sir. As long as you are a salary earner, banks will use it as collateral. Remember, not contract staff but permanent staff.

starting a biz with loan is risky no matter how easy u think the repayment will be. think about it.

my own view is every thing on this planet earth is business minded "And Business is a RISK" go ahead so far GOD is involve

I wouldn't advise you do so except if your salary (income) is good enough to accommodate the repayment for loans.

Yes you may want to say, income from the transport business could augment the repayment, but for most businesses of this sort, I have seen where many failed. I am not wishing you ills anyway. But it is the truth.

The reason is simple. Most of these businesses you are not in total control of leaves you at the mercy of the drivers and transport company.
If you must do it, then take the following steps.

1. Approach your bank to avail you with full details of the offer letter for the loan & get an accountant to interprete the conditions precedent to draw down on the facility. Take note of hidden charges
2. Get in touch with your banker to spell it out clearly as well in case there are gray areas for clarification.
3. Ensure the bank provides you with the amortization sheet for monthly deductions from your account and ensure it is convenient for you should in case the business fails.
4. Also get the company to provide you with written documentation on how the transaction will run. If you have a lawyer, get him to do the interpretations.
5. Ensure, the transport company provides security of your vehicle under their care and they should also ensure to fix any issue with the vehicle during the contract period.
6. Don't fraternize with the drivers - Let them deal strictly with the company
7. Open a special account for this business and ensure you don't get to touch it for personal use until your loan is fully paid.

I have been a banker before and I have financed most of these deals. They hardly end well.

I wish you good luck though.

Have a great evening.

Never you try or even dream of it. You will ever regret it. Bank loans is never good for business start up. Every business start up has rigorous stage which requires sacrifices. My dear am a business machant and am telling u this out of experience

dking123:
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.

u ve a point but no one wants to try and fail, in this current economy downslide

A Loan to start such a business? Capital NO. I even hate anything that do with loan.

dking123:
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.

On point.

agarawu23:
I hate loans I won't be able to sleep well

You can say that again. I fear loan like hell

agarawu23:
I hate loans
I won't be able to sleep well

benedictac:


You can say that again. I fear loan like hell

more than hell

guy bank loan is not good at all the interest is high apart from that consider the current economic situation of the country. think abt the challenges that wld naturally come wt the business.paying of loan is one of the most difficult thing to do on earth

Well everyting in dis life is all about risk, strolling in the street or on the road is risk, then business is a calculated risk. Bro just take a feasibility study of dis business, just make up ur mind dat come rain come sun u can endure the outcome. Am talking wit experience of life. I know some guys dat their families sold their lands for them to travel and withing short period of time they made it big i mean large, i also know some guys dat quit their job and traveled but were unfortunate, dats life for us, dont be discourage bro go ahead, God and nature is wit u.
Dats why the rich are getting richer whereas the poor are getting poorer bcs the rich always take any available risk dat will put smiles on their faces

/
If it is an unsecured loan, do it.

Not venturing is worse.
\

Borrowing a loan is not a bad idea, there are two kinds of debt, Good debt and bad debt. The problem with your case is that you want to borrow to start that's risky but if you had started and want to borrow to increase your capacity I would hv told you to go ahead. As you dey think say e go easy no b so e go b whn you start

lonelydora:


Wrong information, Sir. As long as you are a salary earner, banks will use it as collateral. Remember, not contract staff but permanent staff.

the truth is bank would not even give you loan for a business that can not pay itself. not only that, bank is not a father Xmas that just dashes money without due diligence, they would conduct their due diligence and ensure that all or more than 90% of the risks are reduced. remeber, when a bank gives you loan, they becomes part in the business and would do everything to ensure its growth. go to ur bank and you will be amazed at the questions your account officer will ask.

You are better off waiting till the economic situation in the country gets better. I want you to try and save a bigger part of your salary every month, do this for one year. After a year, you can then go for the loan knowing that in case of an emergency you have savings necessary to mitigate unforeseen expenses. Like most business owners would tell you, there are various expenses encountered when starting and maintaining a business....be smart!

Dnt even think of doing such, cos bank loan can give u High blood pressure start with the money u have.

you're simply trying to diversify.
start that business at all cost
in the future you'll be happy you did

what i'm abt to say, some ppl will attack and call me names cos of it, some will call my people names, some will curse my village, some will even go to the extent of quoting me just to insult me, all the same, i just want to tell everyone that i'm still single and searching.

Dont try it. Transportation biz is good is only u are on ground. and again since u are working drivers and the managers will deal with you and at the end u will sell the truck for cheaps. in the port now, U hardly see goods to convey to warehouses. is not really the best time for u in the trucking biz. just be careful bros. look for another small biz please.

Two major things: The % of the loan (2) The sincerity of whom you want to engage as the driver of the lorry.These will surely determine the success of the biz . Those giving the excuses of bad road and poor economic state are not rooted enough in biz.Its still within the bad road in Nigeria that G .Agofure motor has over 2500 buses running biz for him ,same as God is good motors.Its still within bad economic that Dangote is the richest man in Africa.Don't ever think of a failure in any of your endeavor though the beginning might be hard.

psucc:
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!!!

My dear truck business have so many wahala The driver that will be using it to carry the things is another problem of his own they are full of stories if you don't have heart i do not adviced you.They nearly kill my hubby with heart attack if not God.All because of truck wahala especially with loan involved.

It is not advisable at all, to take the loan, for that kind of biz. Trust me, I'm talking from a very bitter experience. Even if you plan to repay the loan with part your salary & part the proceed from the biz, it is still not viable for the following reasons:
1. You will always be short paid, because the warehouse will charge a commission on every job your truck gets; and usually two or three person would have taken their cut from the initial down payment. This is even before the job is executed, meaning you will face the risk alone.
2. You will not be able to pay premium for GIT insurance with what you will get at the end of the day, based on the above. Fixed cost: diesel, salary for driver & motor boy, road expenses (feeding & police tip); Variable cost: parking fees depending on destination, vio, lastma, wear & tear associated with each trip. For the Goods In Transit insurance, you have the option of joining a group of truckers to reduce cost.
3. You have practically no control over the driver & motor boy once they are out of town. You have to accept whatever you are told that happened on the trip. If dem no use their church mind, ur running cost may greatly increase. You may even have high BP by the time they start calling in with their problems in the wee hours of the day. Dem fit even call u when u are just about to enter 'promise land'. It can be that bad.
4. Your risks are inherently higher if you start with one truck. The reason is simple: if you haul goods like gala, bigi etc that has a short shelf life, and your vehicle have a major break down, chances are that the goods would be rejected once you don't meet the deadline. Imagine paying for goods more than twice the value of your truck - body go tell u na. You will become highly indebted, such that your salary sef no go fit meet up.
My broda abeg no try am! Look elsewhere.
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Talking salary, did you mean d 1 the investment will pay you or you have got a paid job? Your hard earned money will charge you with d right enthusiast and dedication. Bank loan with d current economic lassa fever, i saw you crying. Many business succeed incuring big risk, but d millions that fail never make it to book

You won't be availed the loan in the first place due to so many factors.

1. Banks support existing businesses, not start-ups.
2. Your collateral is simply not OK (salary) and you can't tell a bank you want to repay a business loan from your salary.
3. Banks only finance brand new trucks, no tokunboh.
4. The bank will not give an untested businessman money adequate enough to get a brand new truck.
5. Source of repayment sounds iffy. In the sense that what is the guarantee business will be adequate so you won't default. Remember the business should generate enough for repayment.
6. How well off are you financially if your statement is analysed? How much can you contribute towards the truck?

So many factors, my brother.
But I'll stop here.

Please don't start a new business with a bank loan. In business 1 + 1 is not always 2.

psucc:
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!!!

My dear truck business goes with so many problem. Are you ready for that,the driver is another problem of his own .Most of them are full of stories if you don't have heart i do not advice you.They nearly kill my hubby with heart attack if not God intervention it could have been a different story . I don't think i will advice someone who is close to me to go into such business .

An ideal business that is financed with equity capital (owners capital or money) is still assumed to be financed with loan to get the reward for your money.

Starting a biz with load is not wrong at all.

Why not start a monthly contribution with your colleagues then you collect first? That way you would not be paying interest and not under too much pressure. Also have you done your feasibility studies to know your break even point? Have you also studied the cons of the business?