What is the major challenge with getting loan for business

[Josemendez]

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

 

[Sariana23]

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.

 

[Anis Boukezzoula]

yes, I agree, my uncle was near to enter prison due to loans from banks. I don't know but also the banks are so strict and their rules are complicated.

I prefer to get them from family or best friends or any source except Banks.

 

[greenie]

That's right, I would never borrow from a bank. they are too strict, if you pay for 24 months and in the last month something happens and you really can't pay, they don't look at this thing ... they take the thing that you put as a guarantor or you can end up in prison. I do not recommend loans from banks!

 

[Vladv26]

You have to understand that tons and tons of people go to banks asking for loans and that's why they have such strict rules of selecting their clients. Banks know that they will have problems with many of their clients who take business loans because it's impossible for every business to succeed and that's exactly why they are asking for a collateral

 

[Kamon c4]

For starters it’s collateral and it’s much time before loan is approved

 

[Niftyyem]

It is better to seek for a loan amongst family and friends because of all the bank formalities. It is not even as if the interest you'd have to pay on the loan is a small one. And the collateral issue too.

 

[Bookwormlux]

I think that the best way to go about loans is to take them from family members and friends who won't put much pressure on you. They have to be supportive people though.

 

[Nurudeen]

From on set it's not always adviceable to start a business with loans. You can save up and start small

 

[Kamon c4]

For starters with no trustees collateral is usually a problem

 

[Sincerem]

The major challenge is too multiple, imagine the time short time duration you you will get for repayment, and the whooping interest rate to pay back. All this things makes it hard for one to acquire loans from bank. I prefer using binance.com site to request for loan, at least the platform doesn't ask too much with what I heard about them.

 

[Ehizzy1]

I think the major challenge people face in getting loans is that much collateral is always needed for loan borrowing ,and this discourage people

 

[WhiteHouse]

To receive loan you will need to have a excellent business plan or idea in which you will table down as the reason you want a loan, also you will need collateral, if you have all these I think you should get a loan

 

[Emmy]

Using the loan for investment is well encouraged, but bank policy is too complex- the rate of their interest can send someone to prison. The very best way is to get loan from friends or family that does not attached too much of interest.

 

[dogmatic_p]

Getting a good business idea is a major factor before securing the loan. The loan will help to start up on a good foundation.

 

[Arwhank]

Some of the people who start businesses are among those who get loans from banks but I think it might be better if we have our own savings because getting a loan from a bank is quite risky

 

[Peterlight]

Banks do offer an affordable loan for their customers and also give them time to pay...if you are an entrepreneur your bank can give you a secure loan which you will benefit from

 

[Kayzzy3]

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 much as loan is considered a means of securing funds 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.

 

[Presido]

I particularl, I am not in support of obtaining loans to start a business, it's very risky and this also put pressure on both the business and businessman if the business is not moving as expected

 

[Dubai]

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.