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Lack of collateral was invariably the reason.
Lack of collateral requirements, low income, problems in filing tax repayment reports and unsound business plans are some of the major reasons for the unwillingness of the formal banks lending credit, to majority of entrepreneurs who own micro and small enterprise (SMEs) (Sacerdoti [2005]).
A lack of collateral registries has prevented farmers from obtaining loans or insurance.
Banks aren't here to help people these days if they have a lack of collateral or a track record.
In this case, Bill's cash flow and Zhiqin's track record more than made up for the lack of collateral.
When it comes to finance, women face particular hurdles, from a lack of collateral to discriminatory regulations and ingrained gender bias.
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What is remarkable about the various microlending models is the fact that the small loans are made to entrepreneurs without any physical collateral and despite the lack of physical collateral, the repayment rates have been unusually high -- over 95% in many cases.
One line of work, pioneered by none other than Ben Bernanke working with Mark Gertler of New York University, emphasized the way the lack of sufficient collateral can hinder the ability of businesses to raise funds and pursue investment opportunities.
However, due to fear of losing assets, inability to arrange a co-signer, and lack of adequate collateral, many fishers are reluctant to obtain credit from government-sponsored programs and seek credit elsewhere.
In the interim, as European officials try to send strong messages to Greek voters about the consequences of an exit, a continuing run on Greek banks — a panic that threatened to spread to Spain last week — could force the European Central Bank to jettison Greece anyway by refusing to replace the euros fleeing the country for lack of proper collateral.
Another mentionable ground not to give loan is the lack of proper collateral (14%%).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com