What is the major challenge with getting loan for business

[Ayokex]

Many a time businesses apply for a loan and get turned down by many financial institution because of the wrong approach is applying for the loan. No financial institution will release their money to any business they are not sure of it's sustainability.

 

[tyrim88]

If you have a very good company already established or about to start, and in the medium or long term future you trust that it will be successful, you should not hesitate to go to the banks, you must have confidence in your company and transmit it to them. Remember that they push as long as they don't see the expected results because it is their investment.

Most times it is very prospective on the one that has a conceive idea to have that believe and confidence that his business initiative would pull out through as planned,But for a new start up,that have not known the terrian properly and things that are onthe field,he might encounter some issues with borrowed funds,and then repayment becomes a problem.It is good to start small and then from revenue forcast you can be able to borrow.

 

[eLdavis]

The system. When it comes to government loans, the system would make it so difficult for you to actually ask for one. Even private loans they make it difficult by making rules that you have to have a certain kind of job that pays a specific amount. Or be at a specific level before you can qualify to collect loan

 

[Sariana23]

Most times it is very prospective on the one that has a conceive idea to have that believe and confidence that his business initiative would pull out through as planned,But for a new start up,that have not known the terrian properly and things that are onthe field,he might encounter some issues with borrowed funds,and then repayment becomes a problem.It is good to start small and then from revenue forcast you can be able to borrow.

Excellent publication and I join it. When it is a venture you don't really know what can happen along the way, how it can have an imminent success and how unforeseen situations can arise. I love starting from the ground up with equity and avoiding future headaches.

 

[Kunkun]

Taking loans from banks aren't always a bad thing, some businesses probably started out like that and are a success now but I still think it's better to take loans from known individuals rather than from a bank

 

[GIFTMICHAEL]

The repayment interest is just what I'm not interested in. I know it will be hard for me to make it up all the time, that's why i don't involve myself in loan borrowing.

 

[Kelly5]

Most financial houses will not grant any individual loan until they see some collateral form the borrower. And this might pose some challenges to someone getting the loan

 

[Richard92]

Most financial houses will not grant any individual loan until they see some collateral form the borrower. And this might pose some challenges to someone getting the loan

what major challenges of getting loan for business is the amount of interest that is been attached to the loan this is one thing that mostly discover employees from getting loan for their business.

 

[Kingsley]

There are somany challenges associated with loans and debt servicing, the truth it is sweet to access this loans but to make payment or repayment is a big issue. The problem lies with the payback and this things happens because they night have used the loan for a different purpose.

 

[Alexandoy]

Most financial houses will not grant any individual loan until they see some collateral form the borrower. And this might pose some challenges to someone getting the loan

Aside from the collateral which is the primary requirement for a loan application is the capacity to pay. Even if the collateral is a mansion but if the owner has no means of income then more likely the loan application will not be approved. Another requirement is the willingness to pay which is not easy to prove.

 

[Setfragil]

Most people hardly feel comfortable with securing loans from banks as they feel it puts pressure on them due to the collateral attached . Are there no better ways to tackle this issue of being afraid to secure loans

As taking up loans to fund a business is totally not a bad idea but people are always scare to do so simply because of the terms and conditions that comes with loan. Loan put so much pressure on the borrower in trying hard to repay his or her loan in order to avoid losing his collateral.

 

[Prettyjanie]

The major challenge with getting loan from the bank is the high interest rate and the consequences if you are unable to repay the loan at the stipulated time. I will opt for loan from family and friends

 

[Razor1911]

The major challenge with getting loan from the bank is the high interest rate and the consequences if you are unable to repay the loan at the stipulated time. I will opt for loan from family and friends

But these days the interest from the banks has gone down drastically. Earlier in our area, banks were providing personal loan at 12% which has come down to 9% after pandemic.

 

[topfly007]

One of the major challenges for getting loan for business is the difficulty in providing collateral for the loan amount that one intends to get coupled with the provision of a business plan

 

[Shigobad20201]

Most people hardly feel comfortable with securing loans from banks as they feel it puts pressure on them due to the collateral attached . Are there no better ways to tackle this issue of being afraid to secure loans

The major challenges of getting loan in a bank for a business has to do with many things , first you have to have a property to secure a loan in a bank, I mean you need to have a collateral to secure a loan.

 

[Sariana23]

The major challenges of getting loan in a bank for a business has to do with many things , first you have to have a property to secure a loan in a bank, I mean you need to have a collateral to secure a loan.

You are right @Shigobad2020 , collateral is essential to qualify for the bank loan. Already after that be sure to pay on time so as not to lose the guarantee. For me this is not an option, I prefer to look for others where I do not put the property at risk.

 

[Josemendez]

The major challenges of getting loan in a bank for a business has to do with many things , first you have to have a property to secure a loan in a bank, I mean you need to have a collateral to secure a loan.

Having the collateral to secure the loan is not just the main issue but being able to pay back the money borrowed in order to avoid losing the collateral to the bank.

 

[Justin]

You need a collateral to get a loan, you also need to show your income because banks want to be sure whether you can pay back or not. You also need to show your bussiness plan.

 

[Alexandoy]

You need a collateral to get a loan, you also need to show your income because banks want to be sure whether you can pay back or not. You also need to show your bussiness plan.

In my experience with a bank the collateral is always the crux for taking a bank loan. Some applicants think that any kind of real estate can be a collateral for a loan. One big issue is having no property so the applicant would use the real estate of his sibling although the sibling would not sign the co-maker sheet. The best collateral for a bank loan is real estate.

 

[Jlife]

Getting a loan to start a business is not the right thing because sometimes you may not be able to pay it back if the business fall, is just a pure risk I would not advise anyone to take. Raise money on yourself the start of the business you want.