lazyhand

What are the things I should consider when taking a business loan?

March 11th, 2006

Here are good important factor you need to consider when getting a loan :

- Loan Amount : How much do you need, and what are they for. Remember, you need to pay for Interest, so don’t borrow more than what you need.

- Collateral : What asset do you have for getting the loan? Or is it collateral free?

- Interest Rate : How much Interest do you need to pay for the loan? Is it worth taking? For example, if your business gives 5% annual return, while the interest rate is more than that, don’t take the loan.

- Payment Term : When do need to make payment back? How long until you finish repaying? What if you default the payment?

Entry Filed under: Money