PROBLEMS FACING SMALL AND MEDIUM SCALE ENTERPRISES IN OBTAINING BANK LOANS
ABSTRACT
This study intends to examine the challenges faced by small and medium-sized businesses when applying for bank loans, with a focus on Union Bank Nig. Plc., Ogui Road, Enugu. It is well known that banks frequently favor large-scale enterprises when extending financing. This is as a result of their larger stock base, collateral availability, and lower risk. Furthermore, they employ professionals with superior expertise and a better-organized management team. So, it is a goal of this study to pinpoint the issues that small and medium-sized businesses typically run into while trying to obtain bank financing. These issues can be divided into three categories: technical issues, management or environmental restrictions, and financial issues. Nonetheless, these issues have been identified. Several recommendations for easing such innate issues were made.
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