Entrepreneurs often face several challenges when seeking finance, including:
1. Lack of Collateral: Many startups do not have significant assets to offer as collateral. 2. High-Interest Rates: Loans may come with high-interest rates, making them expensive to service. 3. Complex Application Processes: The paperwork and due diligence required can be daunting. 4. Equity Dilution: Raising funds from investors often means giving up a portion of ownership, which can be a difficult decision. 5. Risk Assessment: Financial institutions may view startups as high-risk ventures and be reluctant to provide funding.