What is the major challenge with getting loan for business

[Sheyemanu]

If you asked me about challenges people face while trying to obtain loans, I think the major challenge people face in getting loans is that much collateral is always needed for loans, and if you are not a salary earner it's even more difficult

 

[Psalmseen]

The major challenge of getting loan for business is the unavailability of collateral. All financial institutions that wants to have an assurance for them to be secured to an extent that in case there's default, there will be something to go for to cover up for the unpaid loan

 

[Shigobad2020]

One of the major challenges of obtaining a loan is getting a collateral in which you can use to Stand for the loan, they might ask for a house or c/o of land in order to borrow you a loan, the second challenges is getting surety (some on that will stand for you) incase you decided to run away.

 

[Sariana23]

The major challenge of getting loan for business is the unavailability of collateral. All financial institutions that wants to have an assurance for them to be secured to an extent that in case there's default, there will be something to go for to cover up for the unpaid loan

You are correct, one of the big challenges is the collateral for the lenders, they earn the itereses based on the loan but they also expect their capital back. So as you describe it they want "something to fall back on to cover the defaulted loan." In my country they usually ask for collateral such as financially stable people and additional collateral.

 

[LaylaG]

If you have a good and profitable business in doing or starting up a new business that you know you will be earning your profit daily,in this state you have a major reason to go for a loan, because you know you will have the money to repay your loan

 

[Lyrrex]

I wouldn't advice anyone to take a loan from the bank, but rather borrow from friends or family.

 

[Queentener]

Banks hardly give loans to small scale business owners, so the issue of getting loan from the bank is usually not an option because you must be a very big business owner and have valuables to tender as colletera before you can be considered.

 

[Dowenship]

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

The challenges you face before securing a loans from banks comes on many diversify ways... not only the pressure, you even have sleepless night

 

[Erik4150]

If you live in a developed country. Having a low credit point will determine whether you get a loan or not. Without a good credit points you have no choice but to borrow from family or friends.

 

[Robrown83]

There are so many easy way nowadays that you can get loan for starting a business without collateral. Many app are available for downloading, sign up and make request for loan and it will be granted.

 

[Victor001]

The problem with getting loan for a business is the need for provision of collateral and also job security.so many people cling on non government organisation for loan.

 

[Setho]

In my country, there I a group of criteria lenders use to determine who to give a loan and who not to give. Thus criteria includes stuff like performance if the business, Collateral, credit performance score and your guarantor making it hard for small business.

 

[Ehizzy1]

The major challenge is the collateral , they would demand the kind of collateral that would be very difficult for you to provide and that is why many don't consider buying loan

 

[GIFTMICHAEL]

Some banks view the collateral aspect, if the person taking the loan is worth it or not. If the person meets the criteria for loan, sure the loan gets disbursed to them.

 

[Shigobad2020]

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 of the major challenges in getting a loan for a business is getting someone (a government worker) that will stand in your behalf, or they tell you to get a collateral.

 

[nimzy]

As a business beginner it is very difficult to coup up with because started on loan or money borrowed to start because the income flows that is supposed to be usef for the increased or expansion of the business will be used to finance loan interest.

 

[Patrik]

i would say lack of trust from people, not everyone is ready to give you a loan for something they aren't sure if it's gonna either succeed or not

 

[tyrim88]

One major challange most businesses face when they go out to get loans from banks is the non convincing details laied out on their proposal and how feasible the business could be able to bring back funds to repay back the borrowed loan.

 

[Damscooguns73]

Concerning what is the major challenges with getting loans for businesses. Well, I won't advise a business that hasn't been in existence and wants to go for an upgrade or has some financial issues to go and collect loans from banks, the banks won't take pity when you don't meet up target as agreed

 

[Setfragil]

The major challenge in getting loans from the bank is getting someone to stand as a guarantor or a collateral to stand before the loan could be released. I wouldn't blame banks that refused to give out loans without collateral, they does it to protect their finances in case the borrower default in his payment.