INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Has a solid business plan
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Will not have collateral
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Has no record of repaying loans
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Must incorporate first
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Detailed explanation-1: -Poor Credit History Poor credit scores or lack of credit history are among the most common reasons businesses get rejected for business financing. Credit scores help banks and other lenders determine your creditworthiness – or how likely you (or your business) are to pay them back.
Detailed explanation-2: -Ans: The banks may not lend certain borrowers due to the following reasons: Banks require some necessary documents and collateral as security against loans, some persons fail to meet these requirements. The borrowers who did not repay their previous loans, the banks do not lend them further.
Detailed explanation-3: -Heightened regulation standards. Underprepared applicants. Collateral requirements. Credit problems. Decreased community banking. Cash flow problems. Smaller loan amounts. 17-Aug-2020