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6 Simple Reasons Banks Won’t Grant Your Business Loan Request - Business - Nairaland

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6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Opinionated: 2:20pm On Sep 14
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, the leading online travel agency shares reasons you may not be granted your business loan request.

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.

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.

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.

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.

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.

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.

Source: http://www.opinions.ng/6-simple-reasons-banks-wont-grant-business-loan-request/

1 Like 2 Shares

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by eezeribe(m): 2:24pm On Sep 14
Same old story... But they would gladly give to corrupt politicians and friends of the CEO .... Mtcheeeeeeew

16 Likes 1 Share

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by chibike69: 3:07pm On Sep 14
to borrow money from bank

is d same as collecting money from lucifer

22 Likes 1 Share

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by RexEmmyGee: 3:07pm On Sep 14
And lastly if you are not related to a polithiefcian

Quote of the day:

Marriage is like looking 4 University admission..

*_You admire ABU but end up in Nuhu Bamalli Polytechnic!_*

5 Likes

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by maklelemakukula(m): 3:07pm On Sep 14
I have nothing to say grin
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Maitommi: 3:08pm On Sep 14
There has never been enough support for start ups or new businesses. This has to change!!!

7 Likes

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Papiikush: 3:09pm On Sep 14
have enough valuable collaterals then watch those managers smile sheeply at you. grin

1 Like

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Holuwahyomzzy: 3:09pm On Sep 14
Ok
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Maitommi: 3:10pm On Sep 14
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by nurshah: 3:10pm On Sep 14
Maitommi:
There has never been enough support for start ups or new businesses. This has to change!!!


Yet when u make it they will approach u to ",assist " u in expanding
Blood sucking destiny killers

3 Likes

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by pat077: 3:11pm On Sep 14
But they can borrow ppl money to buy presidential ticket form

2 Likes

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Nobody: 3:11pm On Sep 14
your name is nt dangote, otedola, dantata or murray bruce na grin. Nigerian banks gv dangote and co @ 18, but give odas at 25-27. how much profit percentage would on have to make to even cover interest first, smh
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by RexEmmyGee: 3:12pm On Sep 14
Maitommi:

Na wa o

Na booking of space o.

Its been modified
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by lightblazingnow(m): 3:14pm On Sep 14
But Christ as a son over his own house; whose house are we, if we hold fast the confidence and the rejoicing of the hope firm unto the end.
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Ekakamba: 3:14pm On Sep 14
Well said. cool
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by originalKsp(m): 3:15pm On Sep 14
………………………………………………………………… .…………………………………………………………………
I will create explainer video like this one for chikini money. Dm me here olusola@samimath.com
https://www.youtube.com/watch?v=bgl25VCrGAk&feature=youtu.be

2 Likes

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by MichaelSokoto(m): 3:19pm On Sep 14
google Paylater and Quickcheck loan app, dey give loans without collateral & guarantors cool

1 Like 1 Share

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by chimatruth(m): 3:26pm On Sep 14
BANK OF INDUSTRY, I AM WAITING FOR YOUR 50,000 NAIRA LOAN O
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by wildchild02: 3:32pm On Sep 14
Whwere person go come see money borrow now?

Check my signature to order your football jerseys and get FREE CUSTOMIZATION, YES you heard me right FREE CUSTOMIZATION
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by nextstep(m): 3:32pm On Sep 14
Banks are not investors. They don't care about the business idea... what they want to see is an already viable business that needs cash to expand, and they see a 100% chance of getting their money back, plus interest.

It's for the same reason banks can't lend you money to buy a house unless you demonstrate you can pay them back (e.g. have a good paying job). They can't lend on a promise of future performance.

Consistent cash flow, collateral, and growth potential are the critical components.

2 Likes

Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by maklelemakukula(m): 3:57pm On Sep 14
Maitommi:

Na wa o


grin
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by aboyaji(m): 4:08pm On Sep 14
Op, have you seen the movie "Yes Man"? I'd get a loan if Jim Carrey's character works in a bank, irrespective of my position or status.
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by equityadeoti(m): 4:20pm On Sep 14
chibike69:
to borrow money from bank
is d same as collecting money from lucifer



AM WATCHING YOUR IGNORANCE IN 3D.
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Jojolizo: 7:31pm On Sep 14
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by teacherbim(f): 9:13pm On Sep 14
Who bank don help ?I'm cool with Paylater and quickcheck anywhere anytime
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Tex42(m): 10:17pm On Sep 14
RexEmmyGee:
And lastly if you are not related to a polithiefcian

Quote of the day:

Marriage is like looking 4 University admission..

*_You admire ABU but end up in Nuhu Bamalli Polytechnic!_*
How Zaria dey?
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by RexEmmyGee: 10:49pm On Sep 14
Tex42:
How Zaria dey?
Zaria dy gallant o.

Are you an Abusite?
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by Tex42(m): 11:31pm On Sep 14
RexEmmyGee:
Zaria dy gallant o.
Are you an Abusite?
Nuhu Bamalli Alumnus. U?
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by RexEmmyGee: 3:10am On Sep 15
Tex42:
Nuhu Bamalli Alumnus. U?
Still an abusite
Re: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request by ImaIma1(f): 9:03am On Sep 15
When a bank loans you money, they must be sure of a repayment plan. How can they give a new business that they are not sure will even get off the ground. That is recipe for stories. Besides it is Other People's Money (OPM) that they are lending out.

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