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Most people, one way or other, find the credit system really attractive to start their businesses but they forget the risk involved in taking that credit. Suppose the business wont returned as much as was expected and you do not get enough money to pull down your credit amount? So, Isn't better to avoid credit as much as possible to get rid of long term complexities?
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It helps start ups to meet the initial financial requirement and the same should be backed with calcualted risk appraisal
A credit system does not help Start-ups. because credits are time bound but a new company could take a long time to start making enough to start paying its debts.
The term credit is an issue which any enterprenour will always come across. Businesses involves risks, but the risks must be well thought, researched but should not be feared.
Yes it does. It helps start ups to meet the initial financial requrement and the same should be backed with calcualted risk appraisal for availing the loans and its utilization in creation of revenue so that the finance infused in the business starts churning and yield the outut.
Availing facilities doe help an entity to build its credit history. But such avail should have a viable output and proper servicing of the obligation on time.
Credit system has got its own ups and down.
Before we use the credit system one should analyze whom the credit facility is given, their credentials, their financial statements, etc.
In todays market situation no company provides payment on time but we need to ensure the payment must be received in full at the earliest instead of dragging it for a long time.
It does as it establishes the credit history of the start-up; leading to more financing opportunities.
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