Do you give out loan to people who are starting a business?

[Kingsley]

Today we see somany people coming up to say that they want to start a business but are been faced with financial challenges, they look eager and physically and ready to start the business. But the big question lies in the area of them having the technical know-how to manage the business even if they could possibly access the loan.

In some cases the start up manages or struggles to succeed but in many other cases the business dies a natural death due to lack of experience and technical know-how. And those tends to pose a lot of problems for the company that are issuing out this loan. As they may find it difficult to retrieve their money.
Looking at this what is your take?

 

[xxxkelseyooo]

Don’t have the answer but wish to follow this thread !

 

[btaliat]

I cannot do lending business. I am too soft to do it. If a person even refuses to give me back the money, I may not be harsh or even dash him the money. But let me advice people that wish to do that kind of business, you need to be firm and make sure there is legal agreement between you before you lend out the money.

 

[Sotherefore]

there is no need for people to be coming and be asking for a loan to start up a business because to me I don't see the need for that ,a lot of business advisors has been telling us that it is not advisable to get a loan and start up a business yet some people will not understand. I can't give out loan to anyone.

 

[Abigael]

I think that most loan lending institutions are very strict when lending money to startup businesses. In fact, most banks only give loans to experienced and more stable business people. So you need to really proof that you have a good plan that has high potential to succeed. Otherwise, you will need to look for alternative sources of capital.