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TOPIC: Nervous about taking out a loan

Nervous about taking out a loan 2 months 2 weeks ago #1

  • Snowy
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Do you own your own business and, if so, did you take out a loan to get started? My husband and I have a business plan we have been working on for several years and all that's left is for us to take the leap and get the loan, but I'm so nervous about it! I feel like this is a tough economy to start a business and I'm afraid of losing everything we've worked so hard for. How do you get past that and take the chance?

Nervous about taking out a loan 2 months 2 weeks ago #2

  • funkshuttles
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Hi Snowy,

If you don't mind my asking, what area is your proposed business in? Also, you have to keep the big picture in context; while it might be intimidating for you and your husband to start a business, it's also been intimidating for every other business owner out there. As far as risking everything, I don't really understand. Are you planning to put up all of your personal assets as collateral for a loan? If your business is structured properly, none of your personal assets have a bearing upon your business.

Nervous about taking out a loan 2 months 1 week ago #3

  • Zara
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You know what's going to determine whether you win or lose when it comes to that new business that you want to go into? Your attitude. If you totally believe in your business, then you will be inspired to do anything and everything to make it a success, but if you go into it with that attitude then you're dooming yourself before you even begin.

Nervous about taking out a loan 2 months 1 week ago #4

  • Serene
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The first thing that I learned in business is that if you have a really detailed business plan made out that explains everything and you have confidence in yourself, you are going to do great. As long as what you are asking to take out is reasonable, then most places won't say no. You could also check with your local Chamber of Commerce; they should be able to help you find financial backers if you need them.

Nervous about taking out a loan 2 months 1 week ago #5

  • marcus
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I was always nervous about taking a loan but that fear disappeared the moment I decided to take the risk. I would say that you are much better off because you have your husband in the whole plan since it is always safe when there's two or more of you brainstorming. As Funkshuttles has mentioned, you also have to consider how much of your personal assets will be used as collateral.

Nervous about taking out a loan 2 months 1 week ago #6

  • fireme
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Asking your question here was a good start. It sounds like you need to do a lot of research into your business. Success to failure ratio in general, where and who your sales demographic is/are. Everything and then some should be looked into.

Nervous about taking out a loan 2 months 1 week ago #7

  • Tiana
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You should be a little nervous about taking out a loan, otherwise I'd think that you were being reckless. It's alright to be a little afraid, but don't let that stop you if you know you're ready and you have a plan. Just go ahead and make it work.

Nervous about taking out a loan 2 months 1 week ago #8

  • Snowy
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funkshuttles wrote:
Hi Snowy,

If you don't mind my asking, what area is your proposed business in? Also, you have to keep the big picture in context; while it might be intimidating for you and your husband to start a business, it's also been intimidating for every other business owner out there. As far as risking everything, I don't really understand. Are you planning to put up all of your personal assets as collateral for a loan? If your business is structured properly, none of your personal assets have a bearing upon your business.

No, we aren't planning on putting up everything as collateral, but according to a business manager we met with, we'll be liable for the loan if the business fails. Maybe phrasing it like we're going to lose everything was a bit extreme, but it's going to be a big problem if we're paying on a loan for something that doesn't exist.

Nervous about taking out a loan 1 month 6 days ago #9

  • nick
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Taking a loan is a risk in itself and I always prefer if someone does their due diligence and takes everything into consideration. For this reason, it is okay to feel nervous. It just means that you are already aware of all the risks involved and what remains is cushioning the business against failure.

Nervous about taking out a loan 5 days 23 hours ago #10

  • marcus
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Snowy, I'd want to hear how you guys finally approached this. As everyone has said, there'll always be concerns when taking a loan so it is advisable to make sure that every concern has been addressed. Did you finally get these funds?