It is hard to get finance from bank to start a business

It is hard to be able to get funding, because of the current financial climate nobody knows whether the small business that you plan to set up will work or whether you will need to be closing down within the space of a year. It is much easier if you own your own home outright because then there is a back up plan (for the bank) if it fails. This means that your house will be on the line if your business goes in the wrong direction, but if you are confident that you will be able to succeed, then it is a risk that you have to decide whether you are willing to take or not.

Traditionally, banks are more conservative with their investment dollars. Unlike many venture capitalists or angel investors, they are far more likely to approve a loan for an established business over a startup or emerging company. This is largely due to the fact that they are investing the money of their depositors. However, thanks to government agencies such as the Small Business Administration (SBA), which work with many banks, small business owners can get business loans from banks with a strong business plan and well-prepared business loan request. Moreover, banks are more likely to give modest-sized loans, whereas venture capitalists are looking for much larger deals. First and foremost, prior to approaching a bank, you should have all your key documents in order, starting with a solid business plan. You will also need to have the most recent financial statements available, projections for the business (this is typically in the business plan), and a repayment plan, plus collateral. Collateral may include: Hard goods such as equipment; Real estate; Stocks or bonds; Other personal assets; Personal guarantees. Banks also want to know that you're making your own investment in the business. A bank is more likely to approve a loan if (pending a solid business plan) it sees that the owners are investing a good percentage of the necessary startup capital into the business. To maximize your chances of receiving approval on a business loan from a bank, it's wise to look at the situation from the standpoint of the lender. A lender wants to know: Exactly how this business will operate and why it's expected to make money; Exactly how the money will be used; How you plan to repay the loan and over what time frame; That you're willing to take a significant financial risk in the business; That you're responsible and can manage this business; Who else is involved in management or operations, and that they will also be responsible for the proper use of the money from the loan....

Yes this is hard to get the loan from the bank. And after all they are doing their own business. Unless they don’t get satisfied with the probability to be in profit they don’t give any loan. And they have really harden their policies for clearing the loan after the recession and resulting many banks got bankrupt. That is the reality and our generation need to overcome from this during the time. In short very fast speed some time becomes the cause of an accident and injury which takes time to be cured. And Recession was that accident due to very fast and careless speed.