What is the major challenge with getting loan for business

[Trojan8]

The biggest problem with securing loans especially for small scale businesses lie in their inability to provide adequate cover (collateral) for their loans
Also there's a problem with high interest rates, as those willing to lend charge high rates to cover for the high risk associated with the loan.

 

[Doradorwa]

Banks are always very strict with loan money... But using loan money for business is very risky... The money that ought to be your gain will be use to pay interest.... So no gain for you and you will be at the verge of bankruptcy.

 

[Goodday]

Securing loans from the bank has very cumbersome procedures and to me is not the better option at all. Sometimes I'm always hurt by the interest they collect from the customer. Providing collateral security also sometimes difficult because they are not always in need of any asset of movable nature.

 

[Richard92]

One major problem of getting loans for business are guarantors, it very hard to get guarantors these days because nobody wants to pay another person dept when they defult. Another major problem is a coolarteral, getting a coolarteral for loan are very difficult expecially when you have no properties that can exchange for the amount of money you wish to take as loan.

 

[Trexxxy]

I think there are some key factors one need to consider before securing loans for businesses from banks. Most the biggest companies started from loans , if you're sure your business model is a winner , and the terms of the loan is agreeable, I don't see why not.

 

[Aniwhyte]

There are no other major challenges apart from paying back and worst still with interest, the thought of that scares the hell out of me. No matter my financial difficulties I would never collect loan. I rather look for other ways out like borrowing from a friend than collecting loans.

 

[Kaindio Agnes Wanja]

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 challenge in getting business loan is that we find so many people fear that the business may collapse and they have no other means of paying the loan back.
But if you got a big and already established company you can go ahead and get loans from the banks for your business expansion

 

[Keibah]

The thing about business is that you have to take risks. Now that is risk enough. It is better to take loan just to invest in a business that has already started rather than just starting up.
The stakes will be high and there'd always be the possibility of failure. I suggest you start small with what you have.

 

[Alexandoy]

When my brother wanted to import special steel from Japan for his retailing business (of steel) he borrowed the title of my parents' house. A deed of donation was drawn like my parents are giving the property to my brother. That title was what he used as collateral for the bank loan that he would use for his importation. Fortunately the loan was easily approved because of the high value of the property and also the good performance of the business in terms of taxes paid every year.

 

[Maheen]

I will not recommend bank from loan because if ur business got some problem and u didn't manage your installment they will take your guarantor,and the worst part is loan comes with a big interest ..u pay your loan but interest will not let you pay the actual number
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I will not recommend bank from loan because if ur business got some problem and u didn't manage your installment they will take your guarantor,and the worst part is loan comes with a big interest ..u pay your loan but interest will not let you pay the actual number

 

[Life drama]

The challenges of loans are much, before you can secure a loan from a bank you have to go through some difficulties and might still not secure at the end of the day,there is no enabling environment to establish yourself, the facilities are also poor

 

[Heatman]

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

There is no way a registered financial institution would offer you a loan without collateral secured. There are so many defaulters even when they handed in collateral, so not accepting collateral is way too risky.

 

[Ltherman]

Am so wary of bank loans, maybe because of the way the banks operate in my clime. Aside the collateral sought for the cumbersome process of getting the loan of which most times you may not is an headache on its own.

 

[Mujahid12]

The major challenges if getting loans is usually the interest rate whenever someone wants to oat back. The rate is always on the high side making it difficult for people to comply. Also, the collateral need for loan acquisition is hard to come by. Hence, people are discourage from getting loan.

Doing business by getting a loan is not very beneficial because it is a burden on us and the interest rate in it greatly matter because it is not easy to manage interest rates in business Therefore, you should not take loans in excess amount, you should take a little bit to do any business.

 

[Tiwa]

Having collateral( acceptable one is major with banks. Also , credit check rating is another vital note. Having both with a superb proposal can significantly help in getting loan approval. However, sometimes even with all these, loan application can be rejected. Reason usually is due to the nature of the business you are engaging in.E.G if you are going into perishable goods. Its a high flag.

 

[Dylinks]

The major problems of getting a loan for business are listed below:

1. Inability to a stead flow of income no matter how little it is.

2. Inability to keep book of account such that it will be used to determine the financial position of the company.

3. When the products/services isn't viable.

 

[Farhan Aslam]

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

Such a loan should be taken only when you are fully confident that it will bring you a profit. If you feel that your business will give you a chance to make a profit, you should never get a loan from a bank. Why should make a battery policy before taking loan.

 

[Adexgrace]

There is someone I know that will never bring the idea of securing loan from bank despite being a very big and rich woman, she do business with whatever she have. In her situation she already know the challenges related to getting loans from bank and she will always say, She want peace of mind. I guess this is also part of the challenges of securing loan from bank.

 

[Emmanuella]

there are many challenges...insufficient credits, lack of collateral especially if it a small or new business , sometimes too the lender/bank may look at the capital if it's not enough to generate enough profit within a certain period, one may be denied loan, the type of business one is into can also decide if he will be granted a loan.

 

[Linet]

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

My biggest worry about loans is poor planing. Not having a good plan on how you are going to use the money , how you will benefit from it and how it can help you pay it back are the most important things one should note.
A good plan will make you a real dime but without it,thats trouble knocking.