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Is loaning Good or Bad?
#31
(01-09-2018, 01:21 AM)AmieBotella Wrote: The idea for loans never changed. When a loan is used to buy liabilities then it is not a good loan. But when it is used to invest in cash-flowing assets then that is considered a good loan. The term for that is OPM: other people's money. If you can borrow money to be used to a small investment like the one you mention, a grocery store in your are, that will produce your monthly payment including the loan interest and will let you gain more on the side, then why not loan? But if you're going to loan just to buy a new car that you don't really need, then that's not a good way to use a loan. A loan is bad or good depending on your usage of it. In my opinion.

It's a very bad decision to go for a loan just simply for personal use, it's never going to work out well for such individual because as the time of grace for the payment of the loan draws near with no means of paying back the loan debt, this becomes a very serious problem for the borrower. Take into account that loans comes with interest, I have never seen any loan that came without any interest. Instead of the loan not having interest, it would have more of it. 

It's best to get loans only to be for investment purposes which is capable of yielding that loan cash in multiple times as benefits for the individual that applied for it. By so doing, paying back the loan with the added interest wouldn't be any problem for the person.
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#32
(01-09-2018, 01:21 AM)AmieBotella Wrote: The idea for loans never changed. When a loan is used to buy liabilities then it is not a good loan. But when it is used to invest in cash-flowing assets then that is considered a good loan. The term for that is OPM: other people's money. If you can borrow money to be used to a small investment like the one you mention, a grocery store in your are, that will produce your monthly payment including the loan interest and will let you gain more on the side, then why not loan? But if you're going to loan just to buy a new car that you don't really need, then that's not a good way to use a loan. A loan is bad or good depending on your usage of it. In my opinion.

It's good and sometimes its bad, you need to manage your finances properly if you manage your finances properly it's good, but if you loan money and waste it and not properly manage it's to bad.
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#33
There are always risk in taking loans for business, like what happen to your business. You loans small amount of money for it and luckily your store somehow earning good like you said. But it want to try more loaning bigger amount for your business expansion, maybe it is the right time to do some research if you invest more in your store, will it be more productive? Sometimes the research and analysis may say if your bigger loan plans will be good or bad in your career in business.
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#34
It depends on where you'll gonna use it. If you will going to take a loan just for leisure or material stuffs that are not necessarily need, I can say that it is bad. But if you are going to use it in something profitable like business or acquiring new skills or knowledge, definitely it is a good thing. Loaning can be good or bad, it depends on what is the purpose of the loan. So think wisely!
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#35
The best example for good loan to consider is what you did with the loan you got. You use the loan to fund your grocery store and in return it helps you with your needs and with paying the debt as well. Loan may be a negative word in general but when availing a loan, it's great to consider how to use it positively that will generate income. Loan depends on how it will be spent can change ones life in a good or bad way.
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#36
Well loaning is great specially if you used the money you loan to put up a business. I think every businessman build their business from the money they loan. I mean, if you lack the money to put up then why not borrow the money from a lender? If you think you know what you are doing I am sure you can pay back the money you owe.
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#37
It depends, if you loan for bad purpose will its bad, but when you loan and use money for good purpose it's 50/50 form me it depends how you manage your finances.
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#38
Well it depends on the motive of taking the loan. If the money is used to invest and venture in a business then the loan is worth it, why? It brings more opportunities to make money and repay the debt leaving the loaned with more profit. In the case where the loan is used in other things which are not really helpful to the situation or the loaned person then that is a bad loan. In the end the person who is loaned will be experiencing trouble in repaying the loan leading to a bad credit situation.
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#39
It depends how you manage your money and finances, loaning is good it depends how you handle your finances.
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#40
There are series of reasons people decide to get into loans and one of them is about business which is a situation where those involved will have to get these loans to invest in their business with the hope of making returns in the future and payback such loans. So, in my opinion, I think taking up loans is really good for those that are doing so for investment purposes. We should understand that getting loans for personal use can go either ways.
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