What is the major challenge with getting loan for business

[Amal Noor]

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.

Yes loans make difficulties for a person and in return get double so we should avoid and work on our willpower

 

[Ghost]

To evade being arrested by banks one must place an asset for collateral Incase the person is not able to pay back the money. Also you must be ready to let go this asset.

 

[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

One thing about doing business is that it is not really a bad idea to borrow loan from financial institution,but it should not be done when the business is just starting,because the business have not yet have a structure on cash flow and proper understanding of how the market works.

 

[Shigobad2020]

Before you can get a loan to start a business , the bank or the loan shark that wanted to you money must get a good thing from you to make them realised that you have what it takes to pay back the money loaned .

 

[Bigron]

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

Sometimes people are discouraged from looking for loans because of the massive interest rates placed on them. Also, the collateral placed puts too much stress on the recipient which is unfortunate

 

[Shigobad2020]

I

Sometimes people are discouraged from looking for loans because of the massive interest rates placed on them. Also, the collateral placed puts too much stress on the recipient which is unfortunate

i took an online loan recently which I am still paying , the interest is just so much and it starts increasing everyday if you cannot meet the target set for the return date .

 

[Bigron]

I

i took an online loan recently which I am still paying , the interest is just so much and it starts increasing everyday if you cannot meet the target set for the return date .

There is no doubt in my mind that reasons like this are why people are reluctant to take loans. The collateral that is placed on the loan also puts a lot of pressure on the individual to pay back, and some people cannot be prepared to sacrifice that particular item which has been used as collateral

 

[tyrim88]

Apart from the collateral system, there is also the issue of interest rate attached to the loan according to the amount of the loan and the time duration. This can vary according to the different banking policy operated by financial institutions. However, they are government sponsored loans and grants that have zero or minimum interest rate.

That is the more reason i would not advice new startups to go into borrowing,except you have been into business and have the means of repyment,going for government interest loans is better.

 

[Agbalagbaa]

I don't really like that idea of taking loans from banks, if you want to start up a business you are expected to use the little amount of money you have to start up the business.

 

[GoldenLady]

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 get scared about collateral, but the interest one has to pay especially monthly. It can compound to a lot of money of you are not able to pay on time for a while, making it more difficult to pay back the loan.

 

[GIFTMICHAEL]

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

If you are going to take loan for starting a business you are going to finish your piece as well you shouldn't take loan and tried to start with your own money that will secure your happiness and give you a comfortable life with profitable business because laons can destroy your life peace instead of give you peace of profit.

 

[Joseph555]

I prefer to get them from family or best friends or any source except Banks.
Moreover, the collateral need for loan acquisition is hard to come by. Hence, people are discourage from getting loan.

 

[Amanda]

You must realize that banks receive a huge volume of loan requests, which is why they must adhere to such stringent criteria when choosing their customers. Because it is impossible for every firm to flourish, banks are aware that many of their clients who apply for business loans will have issues, which is why they require collateral.

 

[frederick_9]

That's correct, I'd never take out a loan from a bank.
They are excessively harsh; if you pay for 24 months and then suddenly find yourself unable to make payments, they won't even consider the situation.
If you don't provide the item you listed as a guarantor, you risk going to jail.
Bank loans are not something I advise!

 

[Shigobad2020]

Getting loan generally in my own opinion is not advisable , and before you can be able to get a loan from a bank , you need to have a guarantor and also need to have a property in case you ran away

 

[Eli342]

The price and time involved in legal execution. In most cases, banks have the legal authority to seize the tangible property of their clients who have violated lending agreements. However, it's not as simple as it seems. We frequently discovered hidden legal issues that impede the process of executing the assets.

 

[Sincerem]

The major challenge with getting a loan to start a business is the fact that some loan giving organisations have a very high interest rate making it difficult for you to use it to generate reasonable profit. Which may result in failure of not being able to pay back.

 

[Chibson]

There are many challenges of getting loans to start businesses. one of it in this part of the world is that if you do not have a collateral you will not be given a loan especially by banks. Another thing is the interest rate is quite high.

 

[Ebro01]

Apart from the collateral, the interest is one of the major problems costumer's face in getting a loan for the business they intend to do.

 

[Setho]

The major challenge in this part of the world is actually collateral and high interest rate. This is why the best source of funding in this part is either through government interventions or through personal savings.