Topic: It's not smart to borrow funds and Pay back (Read 1527 times)

As a businessman then bank loans would really be your last option if you wont really be able to borrow into those people whom you do know on which into these bank loans where interest is really that low compared into those financing on which their interest per month is really that high which if you do compare it out on banks which usually plays around 0.8%-1.5% basing up on my experience on which its really that too far off
into those financing having that 5% or more.. How much more into those people or lending that having 10-20% per month? You would really be finding yourself getting drowned with debt because you are really just that basically making yourself that paying up those huge interest. As for business man point of view then bank loans would really be able to save you up but we do know that requirements and pre-requisites on getting a bank loan is never been easy. You would really be needing for  yourself to be that get qualified before you would be able to get one.

Everything that do talks about getting a loan and for the sake of making some business expansion or any other related thing then it would really be worth but getting up some loan
just for other non sense purpose then you are really that putting yourself on such potential trouble. How much more into those who doesnt have the plan on repaying those loans? 

I mean I guess that goes without saying but nowadays, it's a little bit more nuanced than just "borrowing money for investment bad, not good you shouldn't do it bs" cause for instance, if you had to borrow money to fund whatever venture you have, whether it be for investing or whatnot, and you tried your hardest to come up with the capital on your own but just can't, all the while being confident in thinking that doing or going for this venture is the right thing to do, not doing it is going to cost you more than just losing it overall. Cause if you lose the money you used for investment, especially if you borrowed money from a bank, I would presume there are ways you can repay them, but the prospect of losing out on a life-changing sum just cause you were afraid to take the risk is going to eat at you more than the losses you would incur, trust me.

Besides, the rich people does this all the time, and that's what makes them rich, they borrow money from a bank for example, use that money to set up businesses, buildings, you name it, and pay the bank back with the money they owed them, while keeping the business running at the same time. So what makes you think the average joe can't do this shit too?

I see business people who dare to take loans, either to banks or people close to them, have no other choice, sometimes they want to save the business that has been pioneered, and there are also those who want to start their luck to start a new business. In my opinion, borrowing from friends or relatives is a better step, but you still have to have a written agreement, as proof if something unwanted happens in the future. Meanwhile, borrowing from a bank, I think has a very big risk at this time, we really have to make calculations as detailed as possible so that we can pay it off every month. Of course, we also have to see how much interest is set, to asking for solutions if we experience delays in monthly payments. We realize that business competition is currently very tight, and we should not take too big a risk that it can result in loss of collateral.

However, everyone certainly has their own understanding and perspective, as well as a tendency to choose to borrow from a bank or other parties. In essence, it is better to choose the one with a lower risk, because we cannot guarantee that the business we pioneer will progress as expected.

We have to think twice before deciding to borrow funds from banks and companies because both apply high interest and they set collateral requirements for loan repayment guarantees, most business people often deal with loans because they use them for business needs and they have estimated monthly income to pay off the loan.

I am not very interested in bank and company loans, except for asking for loans from relatives and friends if needed for business needs and emergency needs, but I hope never to borrow from anyone and I will save some of my monthly income for emergency needs.

In terms of borrowing, it is necessary to think about its return, and it is very necessary if it is difficult to return it, you will no longer be able to get the loan you need, and not only that, maybe your name will be blacklisted by the bank or loan company, it is necessary to anticipate all of that before it actually happens.

If he takes the loan from a commercial bank or from a legally registered loan firm, he will definitely have to repay the loan because if he doesn't, he will be charged for it and if there was any collateral for that loan, it will be liquidated and he will bear the consequences of his action. The only way he will not be disturbed for the loan is if he keeps repaying the accumulated interest and re-borrow the parent amount.

The accountant will help Op to draft how's going to spend the money without repaying back, perhaps! 

It's simple, Op has no single idea about economy and finance per se and that's why he said banks print money out of tin air and encourage people to borrow without making repayment. Even getting a lawyer can not save someone from repaying a loan unless the lawyer is ready to be responsible.

Banks are not the only institution that offers loan to people, there are individuals who engage in such service and you not paying back simply mean you are killing another person's source of income to start your own. Fortunately, lenders in the forum are not foolish to grant loan to newbie accounts. With this mentality, here's an example of those who'll not pay back their loan.

This is not talking about intention or not because debt should be seen from the extent of its use. In a broader context, debt is not a necessity when someone does not know how to use money because it will only add to the problem. Business must be brave to run and must have the ability to develop, the problem is sometimes people do not have money and vice versa people have money but do not have the skills to develop one of these businesses. That is why I say that loans should be seen as a form of necessity not as a step to fulfill a lifestyle.

The question of the success or failure of a business run using borrowed money comes back to a person's skills and to what extent they have the ability to make the business grow. When someone understands what debt is used for, I am sure taking a loan will be much more responsible for him.

Totally laughable into this kind of behavior of someone who do really make out some suggestion about taking up some loan but having plans on trying out to not to pay? You are really that putting yourself into some
potential legal issues that you would be facing off specially we are talking about bank transactions on which we know that this would really be that totally easy for you to ran off a certain loan.
You have signed some contracts in regarding on the loan and its term payments. On the moment that you would really be running away then you would be might be having that civil case
and if you wouldnt really be trying out to evade or would be mislead them then it might be ending up on having that criminal case on which it is really that indeed punishable.

The thing that comes up into his mind on why he had made out such advises is that because banks are fucked up.Government  printed out unlimited fiat and thats why
he would really be having those thoughts in mind and giving out some shit advise. 

Lol, what a dishonest mindset. If you take a loan and don't pay it back you are actually stealing from someone. It's not free money, it's the money from the bank's customers you are borrowing. If you think the lending model offered by banks is unfair and abusive, just don't borrow money from them. Find alternative possibilities of raising funds which don't involve you scamming the lender in the end.

Anyway, people should be careful with you. With that kind of subversive mindset where being honest means to be a loser and to be a scammer means to be smart, it seems people around you will be in constant danger, besides having to be attentive to their pockets...

Then who will give you a large loan without a written agreement and collateral included? Nothing comes for free, even when you pee in a public toilet you have to pay. Bankruptcy is an unavoidable risk in a business, this situation is common and you must be someone who does not run away from all responsibilities when the situation is tight. Other people willingly help you by borrowing money that they have collected with great difficulty, and then you plan not to pay it back when you go bankrupt. I think you are the type of person who cannot repay the kindness of others.

I agree with @KingsDen. I mean in what country can someone take a loan, then hire an accountant or consultant and make a report that the debtor is bankrupt when in fact you have hidden the money. Then the Bank or creditor believes your words and they give up on their money. That sounds impossible. As far as I know there are regulations when you borrow funding and usually creditors or investors have a long selection process to determine whether you are eligible for a loan or funding. Creditors such as Banks also ask for collateral that will be auctioned if you fail to repay your loan.

In fact, this is not such a bad way, because if someone borrows money to pay off another debt, then this person buys himself time, and also maintains his integrity in front of another person or organization.
Therefore, I do not consider this method so bad. But only on one condition: that at this time this debtor is looking for money (earning it) to pay off all his debts, and not looking for someone who would lend him money, so that this debtor would continue to borrow and pay off money from debts.

Trying to teach how to do something illegal (or shady at the very best case) is not a good thing for this forum and moderation should be deleting this topic without a doubt. This post is basically saying take the loan, put it in crypto ,bankrupt, get debt free thanks to bankruptcy, and then use the crypto again to get rich without having to pay your loan back, that's illegal.

If this keeps being p, there could be some people who may actually try it and that's not the way we should be going, that's bad and it is not how a decent human being lives.

If you really want to get rich, there is one logical way and that is starting a successful business, if you really want to do that, you can take a loan or save money and do it that way or save some and rest is loan, doesn't matter how. Then you start your business, work hard, do everything well and get rich, sometimes you get rich with that or sometimes you fail and your business goes bankrupt, it doesn't matter.

I believe that we are going to end up with nothing wrong with trying to do it legit way, not everyone gets rich, there isn't enough money to make everyone rich, we just need to make sure that we try to do honest work and nothing more.

That is a bad example and we all do not need to follow such a bad way and they will definitely feel the consequences of their bad deeds in the future. Because in life we ​​must always see good examples in any sector so that there are always sweeter results that we can feel and I am sure that people like that in your country will also be overthrown by their own people when the people are fed up with their own behavior. But if it is about loans that are not paid because they have certain powers and authorities in the country, it is possible that the bank has indeed been helped by them in certain matters so that the bank can let them take loans without paying them again.

Which country do you come from and what is the loan policy there like. Do people actually take loans without repaying? If yes, what will happen to their collateral? I was thinking you'll say that they should get a lawyer, but I was surprised when you said they should get an accountant. What will an accountant do here?

Loans are used by millionaires to become billionaires. If you are advised by financial experts, you will understand the idea of getting a loan. Please don't near the lending board with this your ideology.

If you intend to have debt, you should first understand what the advantages and disadvantages are and how we can overcome them so as not to get trapped and in debt. Sometimes this is not well understood, even though we borrow money for a business like you mentioned, we can apply for a loan to the Bank and they will conduct a survey and then the money will be disbursed. However, if you do not have good business experience or are still a beginner, you should never take a loan. If you do not have the ability to do business, never approach debt even a little. Because in my opinion having the ability to do business is the main thing, so it's not just money. Having money but not having any ability at all in business can also be said to be unproductive debt.

Rich people usually take loans to do business because they already have a business, they take loans to develop the business to be bigger or already have experience in business. so it's no wonder that rich people who have debt will actually get richer.

It seems your objective here is to take a loan and don't pay it back you know that there's a law about it and of course there's a sanctions file on the court and even a small claims what you have. It depends on the debt you are trying to do if you are just a person who seeks for the debt just to spend money all over with your leisure you are doing wrong because those are dead end liabilities instead the item you've choose possible makes a quick differ instead those have a good strategy with the debt seeks money to create another asset to give them a good amount of cash flow so once it becomes successful and generating money those earnings from this are the one to use for paying the debt that will onwards become your profit gains.

How can they not pay, isn't the loan binding where everyone who takes it must be paid off by the deadline given or it could be that every month they have to pay installments. The phenomenon in my place is that civil servants take loans to buy cars or build houses and their salaries will be deducted every month for installment fees. This loan pattern is not productive and this sense is not a wise decision to apply because the money is not used to develop something more productive.

But because there is no other choice, most people no longer think about the impact of the loan because the most important thing is that they can buy a car or build a house when they want to take a loan from the bank. This mindset has been practiced in my area and unfortunately they never think about how to make money but take alternatives to meet both needs.

I can relate to what OP's saying, borrowing money with the intention of not multiplying it and just passing back is bad because you end up paying back with interests which is your money every time and everybody the loan sharks, leaving you with nothing but a life of slavery.

I had a friend who borrowed money for her business and pays back in a weekly basis. I advised her to ask the loan company for some time to pay the loan since she's using it for her business so she can multiply it, pay them back and continue her business with the proceeds and make her own money without having to enrich them anymore, she lied to them that she lost money and needs more time to raise their funds, they gave her one month ultimatum to pay back the funds and she took her time, put the money back in her business and made more gains from the compounding effect and increased capital with their money and paid them back within the stipulated period with same interest rate.

She confirmed to me that she didn't have the need to borrow again and her business is running smoothly as she now has enough money to continue.