What's the advantage and disadvantage of taking loan either from bank or cooperative society for a new business?

Oluwashina72:
What's the advantage and disadvantage of taking loan either from bank or cooperative society for a new business?

Four business, take a long term loan by at least 5 to 10 years for repayment time. You'll be glad you did. But any short term loan is self dug grave and you can be arrested or accrue more debts in stupid Criminal interest rates than you can imagine.

Depending on your business, take a longer repayment term loan. Because business grows from 5 years and above, some can grow from 3 years to. By growth here I mean financial stability, such that you can't default on the loan even if they want all at ones at this time of your business. Secondly, don't open a business today to start making profit today, instead sacrifice for your business to start making profit after at least 2 years and above. Most Nigerian businesses fail because when they talk about business, they're not looking at the problem that they want to solve in the society, rather, they're looking at how quickly they'll be rich and escape poverty in the shortest time possible (that's failure mindset).

It's only in Nigeria that loans are given only for a very short time even by big banks and they would prefer a very short term loan in order to make quick profit. The economy now begin to dangle because nothing is stable as a lot of debtors are created which would further worsen unemployment in the country.

But, go for short term loan if it's an akara or moi moi business that you can start with 10k and your already owned stuffs like cooker, etc.