203 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  MMM Freezes Participant Accounts To Avoid Festive Irregularities And Excuses ......(See Evidence)

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Your email address will not be published.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

Nigerian Actress, Liz Anjorin Shares Touching Story Of How She Suffers Rejection After Becoming Pregnant
Entertainment
Entertainment

Nigerian Actress, Liz Anjorin Shares Touching Story Of How She Suffers Rejection After Becoming Pregnant

MT - December 12, 2017

In a post shared on her IG page, actress Liz Anjorin, recounted her tear-jerking growing up story. She narrated how as a young lady selling at an…

Excited Nigerian Man Shares Photos To Celebrate The Birth Of His Triplets On Facebook
Inspiring
Inspiring

Excited Nigerian Man Shares Photos To Celebrate The Birth Of His Triplets On Facebook

MT - December 12, 2017

A young Nigerian man has taken to social media to thank God for the delivering of his triplets. Sharing photos of the newborns, he wrote; "Jesus Christ…

Collaboration Brewing: Drake Shares Photo Of Him Being Star-Struck Before Tekno During Conversation
Entertainment
3 views
Entertainment
3 views

Collaboration Brewing: Drake Shares Photo Of Him Being Star-Struck Before Tekno During Conversation

MT - December 12, 2017

Canadian singer, Drake shared this photo of him looking star-struck in the presence of Tekno! These two have been sharing photo with each other lately and we…

Nigerian Act, Flavour Attends The US Consulate Holiday Party With His Two Beautiful Daughters (Photos)
Entertainment
2 views
Entertainment
2 views

Nigerian Act, Flavour Attends The US Consulate Holiday Party With His Two Beautiful Daughters (Photos)

MT - December 12, 2017

Nigerian singer, Flavour stepped out with his beautiful daughters, Gabrielle and Sophia for the US Consulate holiday party over the weekend in Lagos. He shared the photos…

President Buhari Arrives Paris Ahead Of One Planet Summit (Photos)
Politics
8 views
Politics
8 views

President Buhari Arrives Paris Ahead Of One Planet Summit (Photos)

MT - December 12, 2017

President Muhammadu Buhari has arrived Paris, France where he is to attend the One Planet Summit alongside over 50 world leaders. He arrived on Monday evening after…

Real Madrid To Play PSG As Barca Set To Clash With Chelsea… Here Are Full UCL Draws
Sports
58 views
Sports
58 views

Real Madrid To Play PSG As Barca Set To Clash With Chelsea… Here Are Full UCL Draws

MT - December 11, 2017

Defending champions of the UEFA Champions League, Real Madrid will play Paris Saint-Germain (PSG) as Spanish giants, Barcelona are set to clash with English Premier League champions,…

How God Exposed My Worst Enemy In Redeemed Church – Pastor Adeboye Speaks
Religion
61 views
Religion
61 views

How God Exposed My Worst Enemy In Redeemed Church – Pastor Adeboye Speaks

MT - December 11, 2017

Pastor Enoch Adeboye, General Overseer of the Redeemed Christian Church of God (RCCG) showed on Saturday that, despite the several miracles God has used him to perform…

PHOTOS: #EndSARS Rally Commences As Protesters Give IG Of Police 21 Days…Here Are Their Demands
Politics
45 views
Politics
45 views

PHOTOS: #EndSARS Rally Commences As Protesters Give IG Of Police 21 Days…Here Are Their Demands

MT - December 11, 2017

Nigerians have trooped out to protest the brutality, intimidation, extortion and killings of innocent citizens by the Special Anti Robbery Squad (SARS ) and called for its…

This Is How Much Budget Governor Ambode Presented To Lagos Assembly For 2018
Business
55 views
Business
55 views

This Is How Much Budget Governor Ambode Presented To Lagos Assembly For 2018

MT - December 11, 2017

The Lagos State Governor Akinwunmi Ambode has presented the 2018 budget estimate before the Lagos State House of Assembly.   Governor Akinwunmi Ambode The projected budget size…

Pastor Sam Adeyemi Speaks On The #EndSARS Campaign
Politics
40 views
Politics
40 views

Pastor Sam Adeyemi Speaks On The #EndSARS Campaign

PH - December 11, 2017

Pastor Samuel Adeyemi, the Senior Pastor of Daystar Christian Centre has spoken on the recent #EndSARs campaign on social media and according to him, 'the #EndSARS campaign draws attention to deep issues…

How APC Will Defeat PDP In 2019 Election – Amaechi
Politics
52 views
Politics
52 views

How APC Will Defeat PDP In 2019 Election – Amaechi

PH - December 11, 2017

The minister of transportation, Amaechi Rotimi, in view of 2019 election, has admonished members of the APC to devote themselves to God and trust him. During a…

Pre-Wedding Photos of a Police Officer and His Beautiful Partner
Romance and Love
57 views
Romance and Love
57 views

Pre-Wedding Photos of a Police Officer and His Beautiful Partner

PH - December 11, 2017

An official of the Nigeria Police Force has released romantic photos with his beautiful partner who boasts of a flawless skin.  

List Of The 27 Corruption Charges EFFC Wants Maina To Answer In Court
Politics
47 views
Politics
47 views

List Of The 27 Corruption Charges EFFC Wants Maina To Answer In Court

PH - December 11, 2017

While fugitive Abdulrasheed Maina is right that he has not been charged to court for any crime, an ongoing investigation shows he was indicted on multiple counts…

Timaya Bags Grammy Nomination
Entertainment
49 views
Entertainment
49 views

Timaya Bags Grammy Nomination

PH - December 11, 2017

Nigeria’s dancehall act Timaya has bagged a Grammy Nomination for his feature on Morgan Heritage’s “Avrakedabra” “Avrakedabra”. Morgan Heritage is a reggae band formed in 1994 by…

How God Exposed My Worst Enemy In Redeemed Church – Pastor Adeboye
Religion
86 views
Religion
86 views

How God Exposed My Worst Enemy In Redeemed Church – Pastor Adeboye

PH - December 11, 2017

Pastor Enoch Adeboye, General Overseer of the Redeemed Christian Church of God (RCCG) showed on Saturday that, despite the several miracles God has used him to‎ perform…

REVEALED: How Tinubu, Inside His Bedroom, Asked Dogara To Step Down For Gbajabiamila
Politics
48 views
Politics
48 views

REVEALED: How Tinubu, Inside His Bedroom, Asked Dogara To Step Down For Gbajabiamila

PH - December 11, 2017

The intense politicking that went into the election of Yakubu Dogara as the speaker of the house of representatives in 2015 has been detailed in his biography…

How Obasanjo Knelt Before Atiku, Begging For Second Term – Idahosa
Politics
65 views
Politics
65 views

How Obasanjo Knelt Before Atiku, Begging For Second Term – Idahosa

PH - December 11, 2017

A chieftain of the ruling All Progressives Congress, APC, Chief Charles Idahosa, has said he witnessed when former President, Olusegun Obasanjo knelt before ex-Vice President, Atiku Abubakar…

This Weight Loss Of Nigerian Man, Emeka Okeke Leaves Many Stunned (Photo)
Food and Health
67 views
Food and Health
67 views

This Weight Loss Of Nigerian Man, Emeka Okeke Leaves Many Stunned (Photo)

MT - December 11, 2017

A Nigerian man from Enugu State identified as Emeka Okeke a.k.a Baba Mutu, has left everyone stunned with his before and after weight loss photos. weight loss…

Loading...