What is the major challenge with getting loan for business

[Taiwoayan]

Major challenges is interest rate and collateral

 

[Domsimon]

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 major challenge in securing a loan has always been the conditionalities attached. This in most cases makes loan for business people burdensome. So, as a business, you need to really make or draw up financial analysis in rationalizing your decisions before taking a bold step. That is why, it is advisable to secure loan into an existing business not a start up.

 

[Milz]

When you have no solid collateral to offer to the bank for a loan, how do you intend to get one? you can actually research on Google about government grants given to individuals with bright business ideas.

 

[eenya001]

getting a loan in an undeveloped country or in a third world country to start your business is kind of hard because, it's structures and the facilities and not in place to support you getting the loan you could basically source for a loan from your family and friends that is your surest way in getting a loan.

 

[Atiqurrehman]

It is also important to have your debt-to-income ratio-the more debt you have, the harder it will be to get accepted. Lenders prefer a 1.35 debt-to-income ratio on new small business loans. ... This is particularly relevant if there is still no steady cash flow for your new company. There will be some lenders demanding collateral.

 

[Felixko]

i think taking loans from friends and family members can be good way an individual can get his or her business started without enough capital. loans been given from banks are sometimes cost more harm than good because some may take a loan from bank to running a business and the business is not succeeding.

 

[Judee201]

When Nigerians turn to banks to fund their business idea, they understand that getting a loan is not as easy as it might seem to be. The thing is banks and other financial institutions do not wish to risk lending money to businessmen who don’t have any experience in running a business. The banks are more loyal to those who already have at least a small business. There are higher chances that the loan will be paid back.

 

[flowreal]

To receive loan,you have to have a very good realistic business plan in order to know how much money to ask for, be specific and concrete about the business. You have to be able to determine an estimate of how much profit would be made.

 

[Hena101]

There are many problems one must face when trying to get loan to start up a business. This is because most of the bank are not willing to give it out because of one reason or the other. But what i observed over the years on why bank don't want to give out loan to many people asking for it to start a business is lack of proper planning for the business and most of people asking are not transparent in their business plan

 

[Diddi01]

The first major challenge is how to and where to acquire the loan in the first place and after that you request for the loan, you request maybe granted or denied and after you go ahead to start business, there is always the thought of the loan you will have to pay.

 

[Igbokwe chidera]

There are many challenges people face when taking loans for a business like when the business you want to invest in doesn't pay on time, that will make you not to be able to pay back on time and it might lead you to getting into prison.

 

[miztersam]

If you have an existing business that is well known getting loans e.g from Bank is possible but situation where buy you are just starting new business it may be difficult Because new businesses don't have business credit of their own, the bank has to look at the credit of the people who own the business. Banks often deny startup loan requests because the personal credit of the borrower has problems. ... Low credit ratings also affect the ability to obtain startupfunding.

 

[BuchiBankz]

Collecting loans has not been easy one particularly for a starter, especially the interest rates one had to pay back scares most people off from collecting loans

 

[Muhammadawais]

It is also important to have your repayment ratio-the more debt you have, the harder it will be to get accepted. Lenders prefer a 1.35 debt-to-income ratio on new personal loans.This is particularly relevant if there is still no steady cash flow for your new company. Some creditors are going to seek collateral

 

[Eyiteepraise]

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

I am also part of those who doesn't support the idea of obtaining loans to start a business. Business loans due to the terms and collateral attached, can mount up pressure on the Business

 

[Abigael]

Getting a loan with a plan on how to pay it back is not bad at all. The worst thing would be taking a loan and not knowinh how you will pay it back. It would cost you your collateral. Another thing is when you take a loan to fund a startup business. The bad thing with this is that your business will take a long time to breakeven. You will have to use your profits to pay the loan and that may take a long time.

 

[adeniji]

Before someone could have access to loan, he or she must have property whereby the property will stand as back up before been having access to collect loan. Once the business is successful, the loan will be return with exttal charges because the long the money retuning date prosponed, the more the intreast increases.

 

[Sana Diyar]

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.

There are following major challenge with getting loan for business

• 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.

 

[Noor khan]

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

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

I don't like to get loan for business but in a difficult time you should make an effort to get loan for business otherwise you should prefer your own savings for business. I believe business owners must be careful with bank loans because of some attendant problems.
Loan from friends and family is a very good option or loans from special government offers like we have some government schemes in Nigeria.
This is because some of these government loans are collateral free, minimal one digit interest and has a long term repayment period unlike bank loans. Ask in your country.

 

[Irfanali]

Your debt-to-income ratio is also important. The more debt you have, the more approval you will get. From small business loans, lenders prefer a 1.35 loan-to-income ratio. ... This is especially important if your new business does not yet have a steady cash flow. Some lenders will request a suicide attack.