What is the major challenge with getting loan for business

[Blessedsam60]

One of the major challenges of getting loans for business is the high interest rate on some loans and it's short time duration which might not favour us.

 

[Kaffyfolla]

These are the challenges to secure loan to start business: Lack of collateral: Collateral is personal or business property ranging from real estate to equipment. It’s required for secured business loans, including many Small, a lender may look at your income to determine your capacity to service your debt. Fledgling businesses that are overburdened by expenses and haven't yet secured a steady income may have a harder time proving that they have the capacity to repay their loan.
Insufficient capital investment: Lenders view applicants more favorably if they have a reasonable amount of capital invested in the business but can still finance their debt

 

[Alogakho Esson]

Why starting business with loans is very risky is as a result of losses or profit margin among new business owner that is happening among new business owner so sometimes such loans comes with high interest rate which make payment difficult

 

[Ezekiel]

The major problem of working with the loan received from any firm, organization or firm is that it makes one work under pressure,and not with a free mind.

 

[Mayox25]

The major challenges in securing loans for business is two fold,one is the non welcoming attitude of the business owner in securing a loan from the bank and two the stringent processes and conditions put forward by the lending institutions which make securing and accessing loan facility difficult for interested business owners

 

[Toyoabasi]

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

Best way to tackle the issue is having 100% certainty that your company would repay the loan.
Besides this, source for funds elsewhere.
The pressure on businesses due to loan collection is too much.

 

[tyrim88]

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

Optaining loans from the financial institutionalways comes with its own pressure,apprehension of repayment is one of them.This is the reason why it is very important for the business owner to know the dynamics of the business and understand the cash flow source before embacking on any loan process.

 

[Stnicholaz]

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

Do you most banks have lots of bad loans from tons of customers who are unable to pay back thier loans. Banks are not NGOs or charity organisation there are doing business to make profit. If you cannot payback or don't have collateral you don't have any business going to banks for loans.

 

[kayode10]

Collateral is one of the things that prevents most people from obtaining a loan from financial institution and Banks. Majority of the financial institutions will request for a collateral that will be much more valuable than the loan you want to obtain from them.

 

[YERUS]

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 do not think there is any other way out.
You just have to be sure that you would be able to repay the loan, this will release you of any sort of pressure.
Without the bank demanding a collateral, most loan collectors would not repay the loans.

 

[Nomad]

If you have already started your business, if your business is registered with the local authorities, if your business financial records are at the right place, there will be no difficulty in getting a bank loan.

 

[kinqzbitz]

Well the major disadvantage of loans form the banks are most time the interest rate and also the collateral and so the fact that you are not sure if you will be able to pay

 

[Immilash]

I don't recommend giving loans to start up a business, I will only take loans when I have nothing left. But do you think is wise to start a business with loans?

 

[Smiles20]

The big problem around here is that financial institutions are always reluctant to lend out money to new businesses. You will sometimes be required to bring in a wealthy guarantor and the interest rate is high.

 

[Elfinito]

I would love to take a loan to stsrt my dream business but the terms and conditions for tking a loam in my country makes it difficult to proceed with it. Sometimes the loan company goes about sending messages to your contacts if you delay in making repayment

 

[Toyoabasi]

I do not think there is any other way out.
You just have to be sure that you would be able to repay the loan, this will release you of any sort of pressure.
Without the bank demanding a collateral, most loan collectors would not repay the loans.

Yes.
The problem most people have securing loans is the collateral to offer.
Most loan seekers do not have the collateral required to get the loan amount they want.

 

[Nomad]

If you have just established your business and you are yet to make profits, it might be difficult for you to convince the banks, but if you have good credit score, you can get the loan easily,.

 

[Laurentta]

I don't think there is anyway to make people feel more comfortable about taking bank loans. Their interest rate are always high and people are scared to take loans and use their personal properties as collateral.

 

[Good-Person]

Most of the business owners do not get their loans approved due to various kinds of technical reasons. They might have a bad credit history or they may have a charge of fraud on them. There could be many reasons.

 

[HayKay]

The major reason why a loan cannot be secured when it comes to businesses especially small scale ones is that their viability isn't sure. Many don't have the required collateral or have no understanding of how they'll go about in repaying you.