Join NairaWay / Login / Trending / Recent / New
Stats: 219 members, 2,687 topics. Date: March 21, 2018, 12:31 am
NAIRAWAY Forum / Business / 6 Reasons Banks Won't Grant You A Loan For Business (1 Post | 128 Views)
NNPC Gets New Strategies to End Fuel Scarcity in Few Days / $1000 Per Day! Now This Is Real! / how to start online mini importation business with #10,000 and make #250,000 monthly - Business - NairaMan /
6 Reasons Banks Won't Grant You A Loan For Business by nairaway(m) : 11:31 am On Sep 16, 2017
It's almost impossible these days to keep a small business running with money from your own pocket. To meet up with financial commitments, entrepreneurs usually approach their banks for loans and it is rejected. As such, Jumia Travel shares reasons you may not be granted your business loan request.
1. Lack of consistent cash flow
Banks tend to favour small and medium-scale businesses that have a steady flow of revenue coming in every month. If your business can't demonstrate this consistency, your loan request will be denied.
2. Insufficient collateral
To get a loan, you need a commensurate collateral. This may not be a problem for large businesses that own large assets, but it can very difficult for small businesses.
3. Personal guarantees
Your bank needs personal guarantees that you won't default when it comes to servicing your loan. This is a very risky position for enterprises struggling to stay on top of their monthly expenses.
4. Not enough operating history
Banks give preference to businesses with a track record of good performance. The truth is they don't want to fund a business that has been operating for a short time and hasn't sustained a certain amount of success and credibility.
5. Weakening industry
Operating a small business or startup in an industry that your bank perceives as weak or in fast decline will limit your chances of getting loans from your bank.
6. Economic concerns
Banks will not lend money to a business if they feel that the current economic conditions are unfavourable for getting the money back in a timely manner. This is simply because they do not want bad debts.
HOW TO EARN $1 EVERY 2 MINUTES OR $55 DAILY ONLINE
CLICK HERE TO GET FREE TUTORIALS ON MAKING FREE CALLS, WATCHING DSTV FREE ETC
HOW TO MAKE N100,000 T0 N500,000 MONTHLY WITH FOOTBALL BETTING
LEARN HOW TO MAKE N250,000 MONTHLY ONLINE IN NIGERIA
How to Make Huge money From Expired Domain name click http://cashnaira.com
CLICK HERE TO DRIVE UP TO 20,000 REAL NIGERIAN TRAFFIC DAILY TO YOUR SITE
A NEW INTERNET COMMUNITY IS LAUNCHED! CHECK IN AND ENJOY FREE LESSONS
FREE GUIDE! BROWSE FREE, MAKE FREE CALLS, MAKE MONEY ONLINE ETC
CLICK HERE TO EARN $45 – $100 DAILY ONLINE WITH YOUR FACEBOOK ACCOUNT
Viewing this topic: 1 guest viewing this topic
|NAIRAWAY - Copyright © 2016 Oluwasegun Adebayo. All rights reserved. Follow NairaWay on Facebook|
Disclaimer: Every NAIRAWAY member is solely responsible for anything that he/she posts or uploads on NAIRAWAY.