Taking Business Term Loan from banks... Good or Bad?

**icebells82** · 07-08-2008, 02:41 AM

Hi Guys... I'm kinda wondering, is it worth taking a term loan from the banks?

Cos' many banks are like desperados calling me up every now and then "harrassing"

me to take up a loan with them..... the T&C such as "unsecured" are kinda attractive too...

Well, I seriously think I'll be quite a debateable subject.. So plz keep all your replies coming~!!!

**inle** · 08-08-2008, 03:39 AM

Quote:

Originally Posted by icebells82

Hi Guys... I'm kinda wondering, is it worth taking a term loan from the banks?

Cos' many banks are like desperados calling me up every now and then "harrassing"

me to take up a loan with them..... the T&C such as "unsecured" are kinda attractive too...

Well, I seriously think I'll be quite a debateable subject.. So plz keep all your replies coming~!!!

depends wat u goin to use the loan $$$$ for...
if ur borrowed $$$$ can generate more ROI than the loan interest within the shortest possible n manageable time frame...
then it s good...

otherwise, if it went into liabilites items, then it s bad...

**Kuroii** · 08-08-2008, 11:50 PM

agree.. why u need to take loan for?
house? business? studies?
if nt necessary den dun bahx.. interest rates r high de..
even if they gt packages..

**icebells82** · 09-08-2008, 09:00 AM

Hm..... actually, I wanted to take up the loan for my company lor... want to bring in more goods leh..
But not really confident if they will sell well.. Can anyone tell me by experience wat will the bank do if i defaulted the loan ah? will they make me bankrup?

**Kuroii** · 09-08-2008, 04:43 PM

for ur company?
plus the bank will oso need to see if ur company have the ability to pay back..
plus u need to make sure if loan money in bring in more goods le..
ur business will improve and will b earning enuff profits to pay back the interest oso..
otherwise the consequences may be big..
juz my point of view tho.. =X

**inle** · 10-08-2008, 01:54 AM

Quote:

Originally Posted by icebells82

Hm..... actually, I wanted to take up the loan for my company lor... want to bring in more goods leh..
But not really confident if they will sell well.. Can anyone tell me by experience wat will the bank do if i defaulted the loan ah? will they make me bankrup?

i will depends if u haf limited liabilites in ur company or not...
mmmm....
as for ur goods, mayb u like to do a mkt research 1st...
or test the market in a smaller quantities....

b waitin 4 ur new products in the mkt ya...

**Lautouzhi** · 11-08-2008, 04:36 AM

Quote:

Originally Posted by inle

i will depends if u haf limited liabilites in ur company or not...
mmmm....
as for ur goods, mayb u like to do a mkt research 1st...
or test the market in a smaller quantities....

b waitin 4 ur new products in the mkt ya...

Regardless of limited or sole proprietor, a loan from the bank which does not requires any collatoral, will definately requires a personal guarantee.

**inle** · 11-08-2008, 06:11 PM

Quote:

Originally Posted by Lautouzhi

Regardless of limited or sole proprietor, a loan from the bank which does not requires any collatoral, will definately requires a personal guarantee.

the bankrupt thingy will go all the way, if unlimited....

**Stylicious** · 11-11-2008, 11:59 AM

You cannot be sue bankrupt if the amount owned is below 10k. Most banks have a clause in the loan contract that allows them to request an order from the court to seize physical items in your House or Office and have them auction as a form of payment toward your debts.

**ahfaii** · 13-06-2009, 02:37 AM

What is the interest like?
Say SGD$10000 over 12 mths?