Business Loans Vs Price Fluctuations

Greetings to my esteemed friends on the Cent commumity and the entire hive blockchain. It's another day and time to share with you happenings around the business world that'll help make significant progress during price hike in your business. It's your friend @faquan saying hello from this part of the world.

I have discovered that many times business owners don't read the handwriting on the wall before venturing to take business loans from a lender. This has caused many fruitful businesses to crumble within short period of time or to become more indebted to the lender.

It is true that businesses and profitability thrive when price of commodities are soaring higher and higher. At this time major ingredients used in producing such commodities tends to get a little bit scarce and scarcity in turn increases the price of the major ingredients as mentioned above.

Remember that the price of a commodity can drop at any given point in time, hence making businesses to loss heavily. This is what most business owners don't know about.

Indeed price fluctuations can affect the purpose of business loan either negatively or positive. A company or business venture that loan money in order to purchase certain raw materials can be trapped in the sudden increase or decrease of price.

A situation whereby the price of a commodity drops after a loan has been taken, the business owner will eventually run into debt or even go bankrupt.

Apart from the fact that every loan should service itself, business owners should take time to discover the pros and cons of a commodity before loaning money to purchase such a commodity. For instance, a poultry farmer that sees the profitability of poultry products and venture into it without considering the price fluctuations of poultry feed can easily run into debt or completely loss all the birds due to lack of money to feed them.

Learn how to loan money with price fluctuation in mind.

Thank you!