Collateral is what you need most in getting a loan from the bank nowadays and you also need someone to stand for you as a guarantor , and the worst aspect of that of the increment on the loan .
What is the major challenge with getting loan for business
- Thread starter Josemendez
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Most times getting a loan is not a problem , but paying back the loan is the problem if you don't have another source of generating money to pay. It will be difficult for you to generate profit from the loans enough to still pay back the loans.
One of the challenges with taking out loan is the pay back time sometimes the intrest to service the loan will even be greater than the amount you have collected and you are expected to pay unfailing even if the business prosper or not.
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The challenge with loan is the pressure it imposes on the business owner, it indirectly communicates that you can't afford to fail. And failures and errors are part of the processes to success.
The major challenge to getting a loan for your business is always whether or not you're able to pay back the debt in time. It's really very risky for a business startup.
There are many challenges when it comes to applying for the loan. Many people face problem related to mortgage, but I think that documentation is also a really huge issue as well.
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I have made the best decision not to tak any loan from anyone or be in debt if whatever I want can wait. Even my service provider, I don't think I have ever been in debt to them before.
The major issue associated with loans is the latent pressure it imposes on the business owner.
The business owner is forced to think he cannot afford to fail and that could sponsore him to make emotional decisions.
I just finished paying a loan just of recent and its not an encouraging story , the loan was meant for investing in an online business, But unfortunately I was scammed , so couldn't pay back on time and thats why the loan keep increasing again everyday till it doubled the amount i borrowed initially because it was an online loan .
So before taking any loan , we must make sure we have a good source of income to repay back .
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The major challenge of getting any business loan here is definitely collateral and somebody that can guarantee you. The economy is not that good and a lot of businesses are failing so banks are feeling reluctant to loan.
This is just too bad and I hope you recover from that and have also learnt your lessons. From the outset, I wasn't a fan of taking loans even long before I learnt of the disadvantages attached to it.
If you really want your business to be successful you need to avoid taking loans especially for small businesses,a lot of people don't understand the disadvantage of taking loans.
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You cannot deny how much of a risk it is to take money from the bank to start a business but then some people are left with no option. Saving money in this kind of economy is very difficult to even begin with.
Though if you are smart in handling your business affairs , and having a good plan and strategy in returning the money you borrowed , you wont have any problem with borrowing money to start your business .
There are so many factors that contribute to people not succeeding in the business they have established.
In as much as loans could help but Personally I will not recommend loan for any reason except when there is a very good possibility that the loan will really help you succeed in what you are interested to do.
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If you are going to save money for start a building then you will find that price of metal increases next year 15 % means lose of 15 % of your money while this will not case for getting a loan for 3 years to start building to expend your store.
Having to prove enough creditworthiness is one of the biggest obstacles to obtaining a loan for a business. To be eligible for a loan, you frequently need to have a strong history of punctual loan repayments and a decent credit score. Before extending credit, lenders could also want a business plan and documentation of revenue.
Well , you might be afraid of the increase due to inflation but at the same time a lot of people do not put that into consideration much. In as much as there is a sense in what you are doing , a lot of people are afraid of uncertainty in the sense that they might not be able to return the money.
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One major challenge with getting loan for business is Collateral requirement.
For someone who is just starting out a business, where would he/she see a Collateral from. it's better to seek out loan from friends and family, though it might not be enough.
For someone who is just starting out a business, where would he/she see a Collateral from. it's better to seek out loan from friends and family, though it might not be enough.
I am not against taking loans to expand a business when it has attained some stability. But I am against taking loans to start a business. It puts a business under pressure when you have to manage potential losses associated with a new business and paying back a loan. It can drive a business person nuts. And only few businesses that start with loans overcome that early stage unscathed.
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