Most financial organisation do require collateral before you can get a big room for you to start up any business or any organisation that you want to start up.
What is the major challenge with getting loan for business
- Thread starter Josemendez
- Start date
A very reputable collateral and also a guarantor is one of the top things that might give you a headache whenever you are trying to obtain a loan to start a business from the scratch.
The guarantor is a mighty factor in getting a bank loan approved. However, the collateral is still required. For a business loan the other requirements are the documents for the 3 years of operation so the bank can see the progress of the business, if there is any.
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My major challenge of getting a loan for a business has been interest rate I'm always afraid of the interest rate on loans and because of this I'm always discourage.
Th interest rate in getting a loan is the worst thing to tackle in the sense that the interest will keep accumulating and it will affect the business when you pay the debt.
Yes, it is true. There are certainly a lots of requirements for getting a loan approved. In fact, getting a loan approved is celebrated by many people. I do not know why, but I believe that rich people may not need to borrow loans, yet they still borrow loans.
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Well the reason I think that rich people still borrow loans is because most of them have their money tied down in their asset so this is why they would always take loans for any capital projects that they want to execute.
Well, the other reason why many rich people seek loans is because of the fact that they have some real, valuable assets which they do not want to sell and this is why they opt for borrowing loans instead of selling their assets for money.
We are actually talking about the same thing just that you have explained it better than I did but just have it in mind that we are saying the same thing. Most rich people takes loan because their capital is title the asset that they have and so they have no other choice than to apply for loans instead of liquidating their asset just to get capitals for project.
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It's no doubt money is needed to get a business underway, and loans from banks is of the ways of raising capital, but the process is usually complicated and not everyone gains it's better to get sponsorships or loans fr family and friends
That is right. Rich people have put their money in the many assets they have invested in. Then they take loans whenever they have found new projects they would like to try. The good thing with them is that they can easily pay back the loan using profits from the other assets.
If the loan is a very big amount of money then the bank or the cooperative society will want you to issue a valuable collateral and also a very trusted guarantor.
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Yes, the good thing is that our government is also supposedly offering interest-free loans to students who want to study but do not have any money. The problem is that the terms and conditions to get the loan are quite strict and not every student can get that loan.
You are right that a bank loan processing is very complicated particularly with the requirements. I had experienced the rigors of applying for a mortgage in a bank that really almost made me lose my patience. The documents have to be in order that one small misspelled word can disqualify the loan application.
Collateral is always the most challenging things but generally if you do not have anything to offer to get the loan then you better forget about what you are interested in doing with the loan. This will save you from being in serious debt or risk being in jail when you are not able to pay back.
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The major challenge people face in getting loans for their businesses from banks and other financial houses include mainly collaterals. People lack the required collateral that the banks will need to secure the loans
Getting a loan from the bank is not really cool, because of the pressure attach to it, when the business don't work out as expected it can be frustrating, so is better you get a loan from family members or friends
Loans generally is a scary prospect for me except if its a government loan with wiggle room. Bank loans demand for huge collaterals. A person once claimed that a bank worked against one of their clients who borrowed a loan to frustrate his business so that he won't repay the loan on time. His juicy assets were later claimed by the bank. Bank loan is a total "no" for me.
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The major challenge is that a lot of banks are not willing to give people loans to start up a business from the scratch. They usually demand insane collaterals and paperwork .
The thing is that most student loans that most government are always open to students do not have a good conditions attached to them and you can also say that about government of most developed countries like the US and UK who stop the thing is that for all students to be able to get good funding for their education I think they need to work hard and get grants from government which is more better than getting a student loan.
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