Business Ideas

The disadvantages of business loan

A business loan may be the only option for you to get capital to start a business. It can be of great help, but at times it can put you into bad debts that and you will end up in a sticky situation. As an entrepreneur, you must be able to know at what point do you need to borrow loans. Not every business requires a loan, do your own analysis first before making a decision to go for a loan. It is better to know all the risk factors that are involved in a business loan. It is advised that individual Seek professional advise on financial matters.

Security requirements

The most paramount thing a bank can ask before giving you a loan is collateral. It is mandatory, in case of failure to pay a loan, the bank uses this collateral to secure back their loan. The collateral is given depending on the amount you qualify for a loan. The value of security should be equivalent to the amount of loan. Common collaterals are, title deeds, car logbook, pay slip, a house, among others. Most people may not have enough security and end up failing to secure the amount of loan they needed. Some completely lose their properties to the bank for a bank to recover their loans. This first priority for a loan is a great disadvantage of business loan (Sonia Jackson) disadvantages of business loan.

Long processes

It takes a longer time to process the loan. If you need an urgent business loan, you may get disappointed because it might take a longer time than you expected. A business loan has long application processes many forms are to be filled, processing it again will require a lot of proving and checking them may take time. The bank also needs detailed information for verification. By the time your loan is approved, you will have wasted a lot of time with such long processes.

Loan limit

The bank will assess your business and decides the amount of loan to offer. Even if you apply for a higher loan, the bank will be the final decision. The bank may underestimate your business and they end up giving you less loan limit, or they may overestimate and put your liability in case you fail to repay. If you also give out a shallow information, you will be restricted to a certain limit of the loan. This situation may be more frustrating to business owners.

Loan rejection

Not all loan application is being approved. Some businesses may not qualify for a loan. The bank is always strict to in following their rules and regulation while giving out business loans. Not all the businesses can meet the terms and condition and their application business loan will automatically lead to rejection. The rejection may leave you in a dilemma, you fail to understand where to run to, in some cases it makes the business to collapse.



The disadvantage of business loan is a great hindrance to the progress of a business. It is of great importance to be keen and make great consideration when taking a loan.

Important things that you need to know when starting a skateboard shop as a business


Skateboarding has become one of the favorite extreme sports of the younger generation. A lot of teenagers are going crazy about skateboards, that is why you can see many of them shopping online or visiting the different shops that carry the gear needed in this type of sports. With that said, starting a skateboard shop would be a great business idea. With the huge number of skateboard enthusiasts, there is no doubt that you will be able to get unlimited customers.

Sell skateboards online or offline

You have two major choices if you are thinking of opening a skateboard shop. You can either conduct your business online or offline. Both of which have their pros and cons, so you have to weigh things out. But if you would like, you can also have an online store and a conventional shop at the same time.



Online shopping is very popular these days especially for those consumers who prefer to shop in the comfort of their homes. One huge advantage of extending your business on the Internet is that you will be able to reach a wider community. Just imagine how many skateboarders are browsing online for the newest and coolest designs of skateboards every day. For sure, there is a lot, and all of them could be your potential customers!

As long as you come up with a well-designed website and a good customer service, your business will surely grow more than what you have anticipated.


Having a traditional store is still a good option because there are still many people who want to personally visit a shop if they want to buy something. For enthusiasts, they can try out the skateboards that you are offering if you put up a physical store. This will be a better way for them to compare the brands that you carry and choose which one best suits their preferences.

Skateboards and accessories

hdhdh874When opening a skateboard shop, it is highly recommended that you also offer gear or accessories. With this, you can add spare parts (wheels, spacers, binders, bearings, the board itself, etc), shoes, helmets, knee caps, and even outfit.

Since skateboards will be your main product, it is important that you have the most trusted brands as well as the latest innovations in this sport. Check out this electric skateboard review and make a list of the brands that you can offer in your future store. Take a look at the quality as well as this factor will definitely affect how customers will perceive your business.