265 Views

LIST: 6 Simple Reasons Banks Won’t Grant Your Business Loan Request

It’s almost uncertain 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, one of the leading online travel agencies in the country 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.

ALSO READ  Most Banks And Insurance Firms In Liberia Are Owned By Nigerians

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.

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Fela Durotoye Speaks On 2019 Election
Politics
5 views
Politics
5 views

Fela Durotoye Speaks On 2019 Election

PH - February 22, 2018

Fela Durotoye, a consulting guru, leadership coach and public speaker, says he will be running for president, come 2019. The 46-year-old declared his intentions on Thursday, adding…

Governor Fayose Reveals What He Discussed With INEC Boss Behind Closed-Doors
Politics
10 views
Politics
10 views

Governor Fayose Reveals What He Discussed With INEC Boss Behind Closed-Doors

PH - February 22, 2018

Governor Ayodele Fayose of Ekiti State yesterday held a closed-door meeting with the chairman of the Independent National Electoral Commission (INEC), Professor Mahmood Yakubu, together with the…

9 Facts About Tolani Otedola You Might Not Know
Entertainment
16 views
Entertainment
16 views

9 Facts About Tolani Otedola You Might Not Know

PH - February 22, 2018

In Accelerate TV’s Accelerate 9 segment, stars share 9 facts about them which their fans may not be aware of. This episode features musician, Tolani Otedola. Watch:…

Nigeria’s Winter Olympics Team Completes Competition, Sets Sights On Beijing 2022
Sports
16 views
Sports
16 views

Nigeria’s Winter Olympics Team Completes Competition, Sets Sights On Beijing 2022

PH - February 22, 2018

Following Seun Adigun and Ngozi Onwumere‘s completion of the bobsled event at the 2018 PyeongChang Winter Olympics, Nigeria’s participation at the event has come to an end. According to reports,…

Omoni Oboli Kicks off Filming for “Moms at War”
Entertainment
17 views
Entertainment
17 views

Omoni Oboli Kicks off Filming for “Moms at War”

PH - February 22, 2018

Nollywood actress and filmmaker Omoni Oboli is starting 2018 on a high note, as she has just revealed she has officially begun shooting for her latest project “Moms at…

Broke? Here’s An Opportunity Many Nigerians Have Overlooked
Best of Nigeria
29 views
Best of Nigeria
29 views

Broke? Here’s An Opportunity Many Nigerians Have Overlooked

MT - February 22, 2018

While some Nigerians are broke, truckloads of money flow annually into the account of other Nigerians.  According to a 2016 study conducted by the Nigerian Bureau of…

Transparency International 2017 Index Indicates Corruption Is Getting Worse In Nigeria
Politics
44 views
Politics
44 views

Transparency International 2017 Index Indicates Corruption Is Getting Worse In Nigeria

PH - February 22, 2018

Global anti-corruption watchdog, Transparency International (TI), has again ranked Nigeria low in its 2017 Corruption Perception Perception Index (CPI) released on Wednesday. The latest ranking has Nigeria in…

Ngozi Okonjo-Iweala Appointed Member of Commonwealth High Level Group
Best of Nigeria
40 views
Best of Nigeria
40 views

Ngozi Okonjo-Iweala Appointed Member of Commonwealth High Level Group

PH - February 22, 2018

Former Minister of Finance Ngozi Okonjo-Iweala has been selected as one of the members of a High Level Group on Governance of the Commonwealth Secretariat. The group whose creation…

In Photos: Nigerian Football Stars And Their Wives or Girlfriends
Best of Nigeria
40 views
Best of Nigeria
40 views

In Photos: Nigerian Football Stars And Their Wives or Girlfriends

MT - February 22, 2018

Football girlfriend babes are often as worthy of attention as their boyfriends, so we have prepared this exciting list of the Nigerian footballers and their girlfriends &…

PHOTOS: Meet The 10-Year-Old Talented Nigerian Twins Making Waves In The UK
Best of Nigeria
42 views
Best of Nigeria
42 views

PHOTOS: Meet The 10-Year-Old Talented Nigerian Twins Making Waves In The UK

MT - February 22, 2018

Thumbs up to the Nigerian boys who are making the country proud abroad. These 10-year old Nigerian talented twins, making waves in the United Kingdom. The twins;…

Nigerian Startup, Publiseer Amongst Finalists Of This Year Harvard Business School New Venture Competition
Best of Nigeria
55 views
Best of Nigeria
55 views

Nigerian Startup, Publiseer Amongst Finalists Of This Year Harvard Business School New Venture Competition

MT - February 22, 2018

Nigeria’s digital publisher, Publiseer, has been announced as one of the 14 finalists of the 2018 Harvard Business School’s New Venture Competition, taking place in Boston, MA,…

13 Things Every Candidate Should Know About The JAMB Mock Exam
Best of Nigeria
37 views
Best of Nigeria
37 views

13 Things Every Candidate Should Know About The JAMB Mock Exam

MT - February 22, 2018

The JAMB mock examination for 2018 has been scheduled to hold on 26th February, 2018 as indicated on your mock e-slip. Going by some questions we have…

This Is How Fabregas And Messi Greeted Each Other After Chelsea Vs Barcelona Game
Sports
67 views
Sports
67 views

This Is How Fabregas And Messi Greeted Each Other After Chelsea Vs Barcelona Game

MT - February 21, 2018

Last night was a high profile champions league game between Chelsea and Barcelona, a game that ended 1-1 at Stamford Bridge, London. The first half saw Barca…

Throwback Photo: Adamu Ciroma, Olusegun Obasanjo And Murtala Muhammed In The 70’s
Art, History and Culture
71 views
Art, History and Culture
71 views

Throwback Photo: Adamu Ciroma, Olusegun Obasanjo And Murtala Muhammed In The 70’s

MT - February 21, 2018

The photo below is that of Adamu ciroma staring on as Murtala intimates Obasanjo from a book in the 70's. What do you thing about Obasanjo's physique…

Nigeria’s Ngozi Okonjo-Iweala Appointed Into Commonwealth High-Level Group
Best of Nigeria
66 views
Best of Nigeria
66 views

Nigeria’s Ngozi Okonjo-Iweala Appointed Into Commonwealth High-Level Group

MT - February 21, 2018

Nigeria’s former Minister of Finance, Dr Ngozi Okonjo-Iweala, has been appointed into a High-Level Group on Governance of the Commonwealth Secretariat. Prof. Ben Maloney, Communications Officer, Commonwealth…

Movie Adaptation of Tafawa Balewa’s Book to be Screened at Berlin Film Festival
Art, History and Culture
64 views
Art, History and Culture
64 views

Movie Adaptation of Tafawa Balewa’s Book to be Screened at Berlin Film Festival

PH - February 21, 2018

A movie adaptation of ‘Shehu Umaru’, a book written by Tafawa Balewa, has been listed for screening at the 2018 Berlin International Film Festival in Germany. Tafawa…

5 Unusual Ways You Could Get STDs
Food and Health
66 views
Food and Health
66 views

5 Unusual Ways You Could Get STDs

PH - February 21, 2018

Sexually transmitted infections and diseases are common and can be passed on from person to person without se-x. From herpes to chlamydia and HIV, the severity of these…

Psychologists Say Selfie Addiction May Be A Sign Of Mental Illness
Food and Health
59 views
Food and Health
59 views

Psychologists Say Selfie Addiction May Be A Sign Of Mental Illness

PH - February 21, 2018

Taking selfies and uploading on social media is very popular and there doesn’t seem to be an issue with it. However, before you take that next selfie…

Loading...