Many people these days borrowed loans without putting some factors into consideration which later affect them. In my last post, I talked about what to really consider before borrowing a loan and in that post, I mentioned and talked about the interest rate factor and the duration of the long repayment factor which is most time ignored by so many people when borrowing a loan.
Today, I will be move further in alighting and talking about some other factors which many people also ignored when borrowing a loan.
Collateral
Every financial institution that want to give you loan for business will definitely ask you for a collateral. The collateral can be any assest that worth more than what you want to borrow, the aim of the collateral is to help the financial institution to have what they can fall back to paraventure you refuse to pay back their money. Now the question you must ask yourself is how valuable is the collateral to you. If the collateral is something that is dear to you, them you will have it at the back of your mind that you will repay the money back at all means.
Consequences of not being able to repay the loan
This is one of the thing you need to consider before going ahead with the loan, in as much as you are determine and ready to meet up with the agree day of repayment, you might as well create a room in your heart to examine the consequences of not being able to pay back at the expected time due to unforeseen circumstances. Nevertheless paying back of the loan you collect should be your utmost priority.
As helpful as loan can be for your business if properly manage, loan can also be a problem to your business and life if you do not utilize the loan very well. So before you collect the loan make sure that you have a good and realistic plan on ground on how you will utilize the loan.
Congratulations @great-a! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPHe is absolutely right, the best way to be able to perform and deal with loans is to be able to pay on the proposed dates, otherwise it may be worse, so the financed resources must be managed very well to meet the debts.
@tipu curate
Upvoted 👌 (Mana: 70/112) Liquid rewards.