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Jemshah
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Asked: 2023-01-26T14:16:16+00:00 In:

Highlight four reasons that make it difficult for small businesses to access debt financing. (4 marks) Oct/Nov, 2022

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Highlight four reasons that make it difficult for small businesses to access debt
financing. (4 marks)
Oct/Nov, 2022

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  1. Enlightened
    1. Lack of collateral: Small businesses may have limited assets that can be used as collateral for a loan, making it difficult for them to secure traditional forms of debt financing.
    2. Limited credit history: Small businesses that are just starting out may not have a long credit history, which can make it difficult for them to secure a loan from a traditional lender.
    3. High-interest rates: Small businesses may have to pay higher interest rates than larger businesses, making debt financing more expensive for them.
    4. Strict lending criteria: Traditional lenders often have strict lending criteria that small businesses may not meet, making it difficult for them to access debt financing.
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