Topic: Why is it difficult for people to get capital easily? - page 4. (Read 1090 times)

Just as everyone in the world cannot raise capital to run their business, neither can they become rich. To be rich you need capital. As for those who are unable to raise funds, I would say they must have fault. Because all those who are in the line of riches in the world today had no ability to acquire capital through inheritance but they have become established businessmen today. So I would say that building capital is not possible for everyone. An entrepreneur has to make maximum efforts to make it. When you have complete confidence in yourself and people trust you, acquiring capital becomes a very easy task.

Generally family provides maximum support for initial capital. But the one who will be given that support i.e. the entrepreneur if he can earn the trust of all the family then he can collect his money very easily. And to gain this confidence he has to do something even on a small scale at which level an entrepreneur can succeed.

So I would say that if you want to be an entrepreneur, the first step is to build confidence in yourself. If you succeeds here, will also succeed at all levels as an entrepreneur.

It is not always an easy thing to get capital because while you are still making your savings, you still need to feed yourself, pay your rent, and sometimes assist some relative who might be in serious need at the moment. Getting a capital for your business involves you being very intentional about it, it demands discipline and a whole lot of commitment if not, it will become very difficult before you will be able to raise something reasonable.

You have to also know that meeting the needs of your relative isn't your primary responsibility most especially at the point when you've not become financially stable. You need to at certain time speak to then and let them know that this is not the best time to expect anything from you. You so need to decide on the amount you will be saving every month and then you put in the required work to getting the funds, it might not be all that eady but with patient and determination, you will certainly get your desired capital.

Getting capital to start a business is not easy, especially if we are born from a family with an average economy that does not have assets that can be used as collateral in a bank so that we can get a loan and use it as business capital, but that should not be an obstacle because we have to be creative when If one step is closed then the other steps should be able to be taken.
I got capital from the increase in Bitcoin prices several years ago but unfortunately, the pandemic forced the business to close, currently, I am collecting capital to start a new business by setting aside money from my salary, of course, I won't be able to start the new business quickly because the capital will take quite a long time to be able to collect but I will still choose that rather than borrowing from a bank with these uncertain world economic conditions.

Starting a business isn't meant for everyone and raising capital as well isn't a skill everyone can possessed although it can be learnt. Those who have mastered the skills of raising capital are among some of the richest people because it's a skill less than the 1% of the world has. Raising capital can be done in various ways but most importantly, you have to be seen as someone people can trust before you'll find it easier to raise capital. Make yourself trustworthy first and raising capital won't be an issue.

It doesn't matter where you want the capital to come from whether from your relatives or people you don't know, just build a reputation of been trustworthy and successful first then people will be willing to Invest in your ideas. People are using crowdfunding to raise millions for their projects in this industry and that's something you can do as well when you have a reputation attached to your name because people aren't investing irresponsibly as before in project or people they don't know anything about.

I believe you aren't taking about raising capital via the cryptocurency industry but through traditional means so I'll advice you start with the least you have and build and make a business successful first. Sell some liability or assets if you don't have any liability and start something small (then become successful at it) and you can use that reputation to get the capital you need to expand or go into any business of your choice. Your friends and family members will be willing to lend you some money or invest into you business or even your local bank when you have a good track record.

Honestly? Not really fixed it, what you need to realize is that not everyone in the world can find capital, that's just something you have to accept from the get go. Now after realizing that not everyone in the world gets to do that, and even almost all of the people do not get to do that, and the best you can ever hope for is having a house and a car when you die to show off and nothing more that's it, then you will start to realize only a minority amount of people have that kind of capital. That is the first step, second step is to figure out how you could get there, and I know that we do not have a recipe to get there, but you could definitely work hard to find the way, I do not have an answer for you, but I have the emotional support to tell you that if you fail and do not have capital ever, that's fine, that's most of the world.

Banks wont really be that dumb on giving or granting some loans on whatever a certain individual would really be requesting on which means that they would really be adjusting basing up
with your financial capacity which would really be checked into your bank accounts history from those income and outgoing transactions whether it would fit out into the amount requested for loan or not,
if they wont really be that get convinced then they would really be asking further more possible things that you can add up like those business and other source of income you do have
or having those properties or possessions on which it would really be acting out as a collateral for the said possible loan that you are requesting. If ever you cant really be able to present one of those then you are most likely be rejected or would fail on getting approved.

You would really be taking up such huge risks on trying out to take a loan but doesnt have the idea on how to run a business yet if ever you do get a loan or being approved but doesnt have
the idea on what you should gonna do then you are really that putting those amounts into danger of losing or spending it all on something which it isnt worth.
Tons of people who do have some brilliant ideas in mind on how and which business they are really that planning to start with, capital is really just that the main issue or problem.

You are right, my friend recently applied for a loan to build a new business but the bank will review your work history and your monthly income, if financial credibility does not support the amount of loan that has been proposed then the bank will not approve his proposal and other solutions they have to make a loan application lower according to the predetermined payment time.

We must have business management skills and have the ability to develop entrepreneurship, however you have planned a strategy in a business proposal, it will be meaningless if you do not have the skills to develop your business, lenders will review your proposal and they will ask critical questions about your proposal. . They are very careful in selecting business proposals that are suitable for providing loan capital for long-term business periods.

I havent experienced on this one after all the loans that i have done in banks on which they would really be only asking for some checkmarks on where those money be spent but not literally they would be asking you
personally or in words on which we know that it is really that something personal but we do know that there several types of loans on which we could be able to avail on bank loans, whether it would be personal,business,housing loan, car loan or whatsoever they are really offering. The thing on here is that you should really that make yourself that be eligible for you to get one and knowing
that bank requirements and prequisites is never been that low or something that having a high standard on which majority of us who would tend to take up some loan will surely be rejected.

Capital is all we need because we've been thinking into those business which we do see that it could make our lives changed in terms of finances.
It wont really be easy unless if you do have all of those requirements then getting one wont really be an issue but since not all people are really that having those documents
or whatever requirements they do ask then this is why we dont have no choice but to take up some loans into those financing companies or even into those lendors which
interest rates are really that too high.

This is indeed quite basic for everyone who needs business capital, because it is very natural for capital providers to be afraid of people who need business capital if that person does not have any clarity in their life or a good reputation in their life. Meanwhile, for proposals whose aim is to request capital through investors or the government, by submitting the matter to the agency, it also needs to be prepared in a reasonable manner so that it can be trusted by the provider of capital. Because everything related to money must be truly complete and reliable.

People who form certain groups to obtain business capital through certain institutions and the government are usually groups who are able to pay their installments in stages or according to applicable regulations, so this looks more different from people who need capital independently for themselves. Although the designation may go in the same direction.

People's Business Credit has been a solution for most middle and lower class people for a long time now, but it may not exist in other countries so this solution will not be so complete if you suggest it here. Because basically every businessman who is in need of capital must try their best through anything as long as it is good enough for them.

That's right, I once tried to borrow money from the bank and they advised me to have a business first so that the capital could be easily spent. I'm sure that in all countries, bank rules are the same, the borrower must have a visible physical business, if it's only online then it's doubtful you'll get business loan capital. However, there are also several cases where the borrower gets collateral from someone who has a little capital in the bank. I know this because there is a friend of mine who got capital from the bank with a guarantee from his uncle who has a large deposit in the bank.

     Capital generation is one difficult task because no one knows the perfect source to get it from. There are variety of options to pick but which is best to opt for. The first is savings. When you think about saving to raise capital, questions will arise like, how long do I have to save before being able to raise this capital, how much extra effort would you need to put to your current work, how much are you even earning, how much are the expenses you make and how much would you be able to sacrifice? Saving is challenging because expenses at the moment increases and can be very unexpected.
     The next is taking a loan, for me, this is a bad idea, ask the "what if" questions. What if the business doesn't boom, what if ya not able to meet the deadline given? Then another option is solicit for funds, who will you solicit from without the person in the long run mocking you for it and asking for a huge payback? Capital generation is basically difficult but if all three options the best and most safest is the first. Save, generate multiple income sources, add extra efforts, set financial goals, pray too and things would work according to plan.

Saving and arranging capital isn't a problem for people who earn well, have their businesses, and aren't employed and earn a minimum wage which is barely enough for them to complete the monthly expenses of their household. Such people sometimes have to borrow money to complete the expenses for the whole month and then worry about repaying that debt with whatever they earn or maybe get some bonus once or twice a year or something.

So, for someone to be able to get capital, they must either have a high-paying job, a personal business that earns good revenue, or more than one income sources so that they can spend money on their personal expenditures and still have money left behind that they can save for their capital.

Very situational because not each person would really be at the same type if we do speak about conditions whether they are really that dependend or simply independent and as said that there people who are really  that family oriented on which means that they would really be giving out importance or priorities on whats really that needed and this is why accumulating or saving up for the sake of having some business or investment would really be that on least priorities on which this is why they would really be that missing out those kind of opportunity and this is really indeed a sad part.

Even on the situation that you do have the capital, then it wont really be that giving out that assurance that you would really be succeeding on any business or venture that you are dealing into.
We do know that its something that cant really be that to  have that assurance about success but somewhat having that kind of dealing could give out those chance to make money if it turns
out to be that successful. We wont really be able to know if its effective or working unless we do try and this is indeed fact the reality.

Good for those who do have that capital to start up and sadly for those who havent even if they wanted into because of some real life circumstances.
Its matter of on how you would really be finding ways and methods.

Trust has little to do with taking loans from a bank. It’s more like the lack of financial credibility from the loan applicant as the bank wouldn’t believe the applicant could pay back the loan at the stipulated time.
Applying for a loan for a business is serious business as no one would be willing to invest in a pipe dream.

I agree with you on the need for information and need to make proper research in preparing a business proposal. A good number of applicants don’t take their proposals and presentations on their ideas seriously and the lender would end up not being interested irrespective of how viable the business may seem.

What you said is also correct, not wrong. But, sometimes there are also institutions, whether government or charitable, that also look for recipients from economically weaker sections of society but are deemed effective if they are given financial subsidies for their business activities.

In my country there is a People's Business Credit Program (KUR) where the loan size is adjusted to the cost structure set by the Ministry of Manpower. So,  If there are people and who are interested, just contact the designated bank and complete the specified terms and conditions.

There are several reasons why people find it difficult to get business capital easily.
What often happens is because of the capital provider's lack of trust in the borrower, sometimes there is a lack of collateral and a sense of security for the capital provider.
Apart from that, limited access to information and a lack of skills in preparing business proposals make it less attractive to investors.
So if you want to get business capital easily, one thing that can be used as a reference is to increase your trust in business capital providers.

True, basically difficulties are actually only for those people who don't want to do anything but have very high dreams, how can you possibly achieve all your dreams if you are basically just silent without any action. If you really want to have a business or build a business but you are having problems in terms of capital, I don't think it can be used as a complete excuse for you not to do anything, because obviously as you said that now everything is quite easy, you can submit a proposal to several service companies that will be able to provide you with a loan in a certain amount.

With that the problem is solved and you can build your business, as long as you have prepared a lot of preparation regarding some basic things that are needed to manage your business properly. Sometimes it's like what I said above, someone has high dreams but they don't do anything and don't want to take risks, basically if you want to experience progress in your life then you have to take risks, everything that goes on in life will have its own risks, and why there are people who can succeed it's because they dare to take risks who never give up in fighting to achieve their dreams so that they will get something worth the process they have gone through. Failure is not an excuse, because it is a natural part of everyone's journey, because only by failing will you know what you should do next for something better.

If you are a member of a big family then surely some hostile environment can be created in your case. Especially if you have  siblings who is responsible for maintain your household. Managing money for business from them is a difficult task.
Normally in business, the first step is raising capital but raising this capital is certainly not an easy task. When you were a student of school or college level, if you asked someone for money, they would be willing to pay a small amount, but not everyone would agree to pay as captial for business. However, raising capital is not difficult for everyone.

But if you have conscious siblings or relatives they will arrange capital for you. If not, you must collect the capital at your own risk. If everywhere refuses to pay you have to collect the money through work.

100% do not seek any validations from other people regarding on your plans or other agenda because sometimes they aren't agree or happy on what you're planning to do. Some country, it's a traditional way for a breadwinners to support their families even if the parents are still alive, This is a way to show gratitude to their parents who raised them but you're right, it's not a child's responsibility because if you'll continue to do that, for sure you can't save for yourself and your life plans.

The Internet today has become an additional opportunity for every seller to get closer to the consumer. Previously, there were no such opportunities and everything was much more local, now you can sell your goods all over the world, everything is changing and those who adapted well to this were able to benefit from it.

But creating some kind of business does not mean creating a capital, since the ability to manage finances will be the determining factor in this. You can earn good money, but spend everything without saving anything, thus creating capital will be impossible. But this applies to those who can engage in entrepreneurial activities, but for ordinary people it is difficult to create capital, because it will take a whole life to create something significant from a salary.