What are the major challenges in raising funds for new business ventures?

Question

What are the major challenges in raising funds for new business ventures?

Answer 1

There are many challenges in raising funds for a new business venture. Banks will want to see a good credit score, a solid business plan, a history of business success, and a profit and loss sheeting, and income to offset expenses and losses. With a new business, most of those aren't available. Most new businesses run at a loss for the first 2-3 years and you need to prove the ability to repay loans or investors.