What is the major challenge with getting loan for business

[delnovem]

Lenders typically look at the credit lines and past payment history in your personal and business credit reports when making lending decisions in order to determine your credit worthiness or likelihood of repaying your loan on time.

 

[gammarays]

The major issue is having the required collateral. Banks and other lenders requires you to have better financial records and collateral bigger than your loan amount and that's difficult for normal people.

 

[Thinker009]

The problem is the collateral been demanded by the banks , since they demand more collateral it's more difficult getting the required loan because you need to provide the required collateral

 

[Ruth]

Getting a loan might seem like the easiest way to get out your financial challenges but it's just postponing the evil day. The only time it is advisable for you to get a loan when you are sure you can pay it before the due date. If not they're a lot of problems attached to not meeting up.

 

[Bousine123]

I think your credit score and the size and level of your business can be a major hindrance in you getting a business loan.

 

[Skysaint]

The major challenges of getting a loan for a business especially for it's setup is the risk of the business not working out as expected within the timeframe of making back repayments. This normally do put every business man into pressure

 

[Ralphjoe]

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 financial institutions with definitely demand for collateral before you can obtain loan from them for your business except they are very certain about your business credit score before they can Grant you a big loan without any form of collateral.

 

[Hojo]

Using loan to start up a business is very rampant nowadays , the disadvantages is using a small loan to start up a business which will lead you to just working for the bank

 

[Sotherefore]

The major challenges of getting a loan for a business especially for it's setup is the risk of the business not working out as expected within the timeframe of making back repayments. This normally do put every business man into pressure

I think there are some business bank that can actually give out a loan without collateral to people who are interested in engaging a business ,you can never use your university degree as the collateral.

 

[Alexandoy]

I think there are some business bank that can actually give out a loan without collateral to people who are interested in engaging a business ,you can never use your university degree as the collateral.

What kind of bank will give you a loan without a collateral? Any bank can do that for you provided you have the backing of the bank's executive officer (president or vice president). The bank officer will serve as your co-maker so that means he should be close to you or to your family.

 

[Josemendez]

Most financial institutions with definitely demand for collateral before you can obtain loan from them for your business except they are very certain about your business credit score before they can Grant you a big loan without any form of collateral.

Sure , collateral are part of the things that make it possible for one to get loan . It is also part of the pressure that people face when going for loan. People have to seek for ways to avoid losing the collateral

 

[Shigobad2020]

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.

I prefer getting loan from a friend and from a cooperate society that will not put charges on the loan , I increment on the loan everytime is what kills faster than a bullet.

 

[Kaffyfolla]

Securing loan from bank is not easy as that in my own country, if you can not produce collateral security, you can not be given loan

 

[Filicit]

One major challenge about getting lian for most people and even myself is credit score, the banks usually request for a high credit score with good balance and sometimes there isn't enough funds to meet that

 

[Chizfab]

Many banks do not grant loans to small business owners, they would rather prefer to grant loans the big scale businesses. Also, many business owners do not present the required documents like business plan, needed to generate loan.

 

[eLdavis]

Securing loan from bank is not easy as that in my own country, if you can not produce collateral security, you can not be given loan

True but recently in my country various online organization or should I call them bodies have started coming up to give loan out easily, some of these examples includes opay, fairmoney, Okash and the likes. These applications has helped in reducing the rate at which people go to the bank for loan.

 

[kayode10]

Collateral is one of the reasons why some people are unable to obtain loans from the financial institutions like bank. Some banks require collateral far more than the loan you are applying for.

 

[Kingmarvex]

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

In Nigeria getting loan for a large scale business is easier than a small scale business, banks are interested in what they gain and collateral, even the few loan without huge or collateral wants a CAC

 

[Good-Person]

Getting a loan is never an easy thing. In my country, there are many businessmen who want to take loan. However, they end up getting in great debts. They also have to mortage many things. On the other hand, they should also complete all the legal formalities and these are some of the major challenges while getting loan.

 

[Sotherefore]

What kind of bank will give you a loan without a collateral? Any bank can do that for you provided you have the backing of the bank's executive officer (president or vice president). The bank officer will serve as your co-maker so that means he should be close to you or to your family.

I don't really know how it's really work, but I just believe maybe there is a way you can actually get a loan without collateral and that is what a lot of people are doing especially when they don't have anything to keep in place.