What is the major challenge with getting loan for business

[Zubair]

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

Yes people are definitely afraid of getting loans, but there are few reasons behind their frustration. First Of y they are afraid of strict rules which are set by banks, and other reasons are if they couldn't give their loans back to government banks, they will take business under their custody. These things make them afraid, and that's why people don't get loan.

 

[Sehrish]

As a business grows, different problems and opportunities demand different solutions - what worked a year ago might now be not the best approach. All too often, avoidable mistakes turn what could have been a great business into an also-ran.
Recognising and overcoming the common pitfalls associated with growth is essential if your business is to continue to grow and thrive. Crucially, you need to ensure that the steps you take today don't themselves create additional problems for the future. Effective leadership will help you make the most of the opportunities, creating sustainable growth for the future.

 

[MarieArie]

Every small business knows that cash flow is a top priority. You need liquidity in order to channel funds into your other top strategic priorities. The second is to move your business, where possible, to a subscription business. If you can implement a direct bank transfer for services or goods at the start of the month, then that goes a long way to eliminating many cash flow issues

 

[Shivay]

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

Yes you are right. Taking loan is like giving a part of you in the form of collateral. Taking loan is a necessity but it eats the person when it becomes a total liability . i can understand The pain because I personally have 1.5 crores of loan.

 

[Peppul]

For me I don't really like the idea of taking a loan from banks, am not always comfortable with the idea of loans. Loans for business can be risky and sometimes it might just be what you need. There is a rule I normally give out to people requesting for loans which is if you don't have a tangible collateral like house, land or a cra please don't apply for any loan because what if the business you want to use the loan for crashes and you can't continue where then will you see money to repay back. If it's a multi million investment company they they can go ahead with the loan, but for a sole proprietorship business for me I won't

 

[Eamodu]

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 is risk of losing it all if your business fails. Before you go for a loan for your business, you need to know that you will lose more if the business fails. Banks won't give you a loan unless you are giving them something that is bigger than the money you asking for in the name of collateral. If you don't pay the loan on the agreed day,you are at the risk of losing the collateral. So be sure of the business and profits margins before you go for a loan.

 

[Adam13]

There are myriad challenges one can face when it comes to procuring a loan: ranging from findinf a loaner, procuring collateral. And many other factors. All these can contribute towards a very challenging time in loan procurement. When you're loaning from a bank you'll have to get a collateral.

 

[Samuel77]

According to my own point of view, there are two major chanllanges we face in getting loan for business, first the item you are going to us a collateral for the loan, and second the person that will as guarantor for you before getting the loan, this are the major things you need to be qualify in getting loan

 

[Seun4luv]

Lack of cash flow. Managing cash flow is a perpetual struggle for most business owners. Sticking to a budget. Another common business challenge is budgeting. Marketing. Lack of capital. Unforeseen expenses.

 

[Sotherefore]

There are alot of challenges that alot of people do face when trying to get a loan for business, example of such challenge that are facing alot of people who need loan to start up a business is the un availability of collateral and valid documents to present bo the loan giving organisation. Another challenge I can possibly fish out in loan giving is that there is no availability of organisation to give someone a reasonable loan to start up a reasonable business.

 

[Hassan14]

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 biggest challenge after taking a loan in any business is that first of all you have a lot of tension in its installation and live in tension and do not pay attention to your business which is the reason. You can never succeed in business so I think you should never take out a business loan if you want to succeed in business.
[automerge]1611248657[/automerge]

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 biggest challenge after taking a loan in any business is that first of all you have a lot of tension in its installation and live in tension and do not pay attention to your business which is the reason. You can never succeed in business so I think you should never take out a business loan if you want to succeed in business.

 

[Hdre3m3n]

Loans are not very flexible. You could be paying interest on funds you're not using. You could have trouble making monthly repayments if your customers don't pay you promptly, causing cash flow problems. In some cases, loans are secured against the asset of the business or your possessions. e.g your home

 

[kayode10]

One of the problems that may hinder someone from getting required loan is inability to provide collateral needed by the financial institution. Those financial institutions asked for collateral that triple the value of the loan they want to give you so that they could be rest assured that they will get their money back if you default. Another problem is not know the right channel to follow in order to obtain the loan.

 

[HassanRaza]

The Challenges Small Businesses Face With Loans Small businesses are more likely to confront the following financial and operational issues than their larger counterparts: Lack of collateral: Collateral is personal or business property ranging from real estate to equipment.

 

[Nicklas22]

One of the major challenges in getting a loan for a small business is lack of collateral, collateral
as it serves as a secondary form of payment for a loan in the event of loan default. But new business owners who don’t yet have business infrastructure may have to use their personal home as collateral, which can be risky.

 

[Aslam Ijaz]

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

According to different religions, it is not permissible to get a loan from a bank and then repay it with interest. The money earned on the lawn will always push you towards loss. If you tell me in terms of your personal opinion, it would be considered a sin to take money from me. When our religion has stopped us, we have to follow our religion.

 

[Osaz96]

There are different challenges invoked in securing loans........ On the part of the borrower you may not want your lender to mount pressure you to fulfill your agreement with him or make you fell less of yourself because you got a loan from him so before you go ahead to secure a loan be very sure of your payment date to avoid embarrassment. On the part of the lender you find it very difficult to trust the person asking for a loan either because of past experiences or you do not believe in the business plan the person has brought forward.

 

[shakky2]

the major challenge in getting loan for business is how to be able to get the necessary documents and requirements required for obtaining such loan and most of these requirements valuable documents from house,golds cars etc

 

[Kane]

Whether you can get a loan for your business or not depends on number of things, such as your total capital, financial condition of your business, and the kind of collateral. Loan is good as long as you have already invested and you need fresh funds.

 

[Ifective]

Getting a loan for a business might be difficult as some financial institutions might deny you of a loan due to lack of a clear goal for your business. Also, loan might be difficult because of lack of collateral in exchange for the loan. Banks will not borrow you money unless you have something that can match the value of the amount being given to you