{"id":34118,"date":"2017-09-20T10:33:56","date_gmt":"2017-09-20T09:33:56","guid":{"rendered":"https:\/\/www.elcrema.com\/?p=34118"},"modified":"2017-09-20T10:33:56","modified_gmt":"2017-09-20T09:33:56","slug":"6-reasons-why-you-may-not-get-a-loan-from-your-bank","status":"publish","type":"post","link":"https:\/\/www.elcrema.com\/6-reasons-why-you-may-not-get-a-loan-from-your-bank\/","title":{"rendered":"6 REASONS WHY YOU MAY NOT GET A LOAN FROM YOUR BANK"},"content":{"rendered":"<p><a href=\"https:\/\/www.elcrema.com\/wp-content\/uploads\/2015\/11\/man-ready-for-an-interview.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-20832\" src=\"https:\/\/www.elcrema.com\/wp-content\/uploads\/2015\/11\/man-ready-for-an-interview.jpg\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/www.elcrema.com\/wp-content\/uploads\/2015\/11\/man-ready-for-an-interview.jpg 600w, https:\/\/www.elcrema.com\/wp-content\/uploads\/2015\/11\/man-ready-for-an-interview-300x200.jpg 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<p>Every business owner knows the importance of having sufficient capital for their business. Without money, it&#8217;s always difficult or near impossible to keep it alive, but the truth is sometimes, capital is difficult to come, hence the need to borrow. This is how it&#8217;s always been.<\/p>\n<p>Borrowing can come from close associates or banks, the latter being the commonest way. However, banks don&#8217;t always lend money to everyone that asks them to. There are requirements and conditions needed before a customer can successfully get money from their bank. These conditions vary, but if met, a customer can easily get the money they want.<\/p>\n<p>If you apply for a loan, and your application isn&#8217;t greeted warmly, then, it&#8217;s probably for any of these reasons&#8230;<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>INCONSISTENT CASH FLOW<\/strong><\/p>\n<p>Banks tend to favour small and medium- scale businesses that have a steady flow of revenue coming in every month. If your business can\u2019t demonstrate this consistency, your loan request will be denied.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>INSUFFICIENT COLLATERAL<\/strong><\/p>\n<p>Depending on the amount of money you&#8217;re asking for, and your bank, to get a loan, you need commensurate collateral. Now, while this may not be a problem for large businesses that own large assets, it can very difficult for small businesses.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>PERSONAL GUARANTEES<\/strong><\/p>\n<p>Your bank needs personal guarantees that you won\u2019t 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.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>POOR OPERATING HISTORY<\/strong><\/p>\n<p>Banks give preference to businesses with a track record of good performance. The truth is they don\u2019t want to fund a business that has been operating for a short time and hasn\u2019t sustained a certain amount of success and credibility.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>WEAKENING INDUSTRY<\/strong><\/p>\n<p>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.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>ECONOMIC CONCERNS<\/strong><\/p>\n<p>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.<\/p>\n<p>&nbsp;<\/p>\n<p>If you&#8217;ve tried to get a loan once, and failed, you can try again. Sometimes, persistence is all you need.<\/p>\n<p><strong><em>Drama <\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every business owner knows the&#8230;<\/p>\n","protected":false},"author":2,"featured_media":20832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[2628],"tags":[3252,2720],"_links":{"self":[{"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/posts\/34118"}],"collection":[{"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/comments?post=34118"}],"version-history":[{"count":1,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/posts\/34118\/revisions"}],"predecessor-version":[{"id":34119,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/posts\/34118\/revisions\/34119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/media\/20832"}],"wp:attachment":[{"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/media?parent=34118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/categories?post=34118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elcrema.com\/wp-json\/wp\/v2\/tags?post=34118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}