... pledged, it cannot be freely disposed of until the end of the loan term. Covenants may also be included in the contracts – obligations to maintain certain financial indicators or restrictions on additional loans. This reduces the flexibility of business management, because violating the terms can lead to a deterioration in relations with the bank or even a requirement for early repayment of funds. Complexity and time for registration. Obtaining a business loan is not always a quick process. Collecting documents, negotiating with the bank, assessing the collateral, reviewing the application - all this requires time and effort that the entrepreneur could use to ...

... to shareholders. However, dividends are not guaranteed: a company may reduce or even eliminate its dividend payments. This usually occurs if the company's profit declines or financial difficulties arise, such as reduced income or increased debts. At times, even in favorable situations, management may decide to reinvest profits back into the business, leaving shareholders without distributions. For investors focused on generating dividend income, such a decision can be quite disappointing. First, it means they miss out on anticipated ...

... duration. Do not invest more than you are willing to lose. Avoid using borrowed or credit money for investments. It is recommended to manage only your free funds, which should not be your last resources. Even if the returns appear very attractive, and the manager promises to multiply the capital several times, it must be understood that there is always a risk of losing all savings. No broker, regardless of their experience, can guarantee complete safety for investors. A prolonged drawdown can extend indefinitely. In such cases, withdrawing funds without ...

... brought up in the family of owners of their own business. For example, I had no businessmen or entrepreneurs in my family, but since 17 I have been in business. With age, you gain experience, but it happens that after working in an industry for a long time, you find so many pitfalls that you doubt the chances of success of your own business. A person who simply has enough experience to feel confident in the role of manager is likely to be more optimistic about an entrepreneur's career. Perhaps the most ideal combination is the thinking of a beginner and the experience of an industry veteran. The settings of the beginner will allow you to look at the situation from ...

... before the economic downturn could afford to purchase two properties with the proceeds just a year later. Additionally, funds were directed towards more profitable assets. In this manner, resourceful entrepreneurs not only avoided losses but actually managed to earn substantial profits. This means that crises favor those who can orient themselves in a timely manner and realize assets before their value declines. This approach minimizes losses from devaluation of the national currency, allowing for the acquisition of undervalued assets, and more. Where to Invest Funds During an economic downturn, seasoned ...