Can Your Business Succeed without Business Loans?

The business environment isn’t as friendly as one might think. In this industry, things can change on a monthly basis. We all know that a business loan can easily kick-start a company. But how about doing that without borrowing money?

It’s certainly possible to be successful in business without a loan. In fact, 77 percent of small businesses are established with an entrepreneur’s savings. But the things you must do in order for that to happen make it a less desirable alternative. Let’s take a look at some of the disadvantages of starting a business without a start-up loan.

Without a loan, you’ll have to:

1. Get a second job

Capital is essential to the welfare of a business, regardless of whether it’s young or it’s been on the market for years. It’s less likely that you’ll have enough of that when you start your business, if at all.

Since you don’t want to get a loan, you’ll have to get a second job so you can keep the capital coming. Before you know it, you’ll burn from both ends. Plus, after you’ve paid your taxes, insurance, bills and food, you’re not left with much at the end of the month.

2. Forget about collecting profit

You got in business to become rich, didn’t you? To ensure that the future of your family will be prosperous and you will never worry about money. However, without a loan, you won’t be able to gather that profit.

Why? It’s as simple as it is painfully true: you’ll have to put that profit back in your business so it can survive and float above the drowning level. This requires a ton of work, nerves of steel and the ability to make do without profit for a really long time.

You’ll have to purchase equipment, pay wages, start marketing, branding and advertising campaigns – all of these with the profit you could have put in that account for darker days.

3. Stay in business alone

Business isn’t something you want to do on your own. Without partnerships, the chances of your company going under are huge. You need people with similar mindsets to yours, people that are versed in things you are not versed in.

Since you’re not willing to take a loan, you won’t really be able to grow your company however exponentially because let’s face it: you cannot work two jobs however.

You cannot keep on reinvesting profit and you cannot give 100% all the time. You’re only human and you have a breaking point like the rest of us. Plus, if you cannot put your heart and soul into running a successful business, the rate of success is dramatically minimized. Statistics mirror that 42 percent of startups fail because they didn’t address the market’s needs.


Whether you like it or not, you need a business loan to succeed in business. It doesn’t have to be a stellar sum, but something that can truly help your business through the first months, when profits are basically inexistent.

For instance, you could opt for personal loans or online loans provided by lenders like Northcash Loans and similar companies. Again: it’s possible to succeed without a loan, but not for long. Eventually, you’ll burn out and your company will do the same. Notwithstanding, taking out a loan without having the financial means to repay it isn’t wise either, so make sure you carefully analyze your financial situation beforehand.

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