May-June 2020 ISSN: 0193-4120 Page No. 8768 - 8777 Publishedby:TheMattingleyPublishingCo.,Inc. 8768 Challenges in Attaining Bank Finance for Startups SrinivasSubbarao Pasumarti 1 and Anubhav Pattnaik 2 1 Professor & Dean, FMS, Sri Sri University, Odisha 2 Research Scholar, FMS, Sri Sri University, Odisha Article Info Volume 83 Page Number: 8768 – 8777 Publication Issue: May - June 2020 Article History Article Received: 19 November 2019 Revised: 27 January 2020 Accepted: 24 February 2020 Publication: 18 May 2020 Abstract: All startups need money but managing the money of a startup is an art and at the same times a science also. Availability, spending and investment of money are crucial to a startup. Capacity of startup for allowing the smooth operation and not lacking funds for its operations decides the importance of finance in business. Prior to starting a startup, it is essential to know about the available sources of finance. By analyzing the sources of finance, business will get an idea about from where the money can be obtained. Analysis of other sources of finance is therefore important to every business. In most of the case the first choice for startup entrepreneurs is bank loans. This paper analysis the importance of bank loan for startup enterprise and at the same time the paper highlights the problems faced by entrepreneurs in attaining bank loan.. Keywords: Startup, Finance, Operations, Bank Loan. INTRODUCTION A startup venture could be defined as a new business that is in the initial stages of operation, beginning to grow and is typically financed by an individual or a group of few individuals. It is a young entrepreneurial, ascendable business model developed on technology and innovation in which entrepreneurs advance a product or service for which they anticipate demand through existing disruption or generating entirely fresh markets. Startups are nothing but the idea of commercialization. A startup requires continuous flow of money while the generation of revenue by them is insufficient. With less profits and huge expenses, startups need funding to survive. Necessary stability to the business and proper functioning of the business processes are possible only by pumping required amount of money to the startups. Availability of finance can make or break businesses. Startup needs finance for achieving goals, short term and long term activities and for meeting financial requirements. Finance is important to begin the business operations, for expanding businesses and to recruit staff. Companies can obtain finance from a lot many sources like loans, investors etc but efficient financial decisions are essential for the success of a company as it involve the management of financial activities and sources of fund. Capital and capital access to startups is an enduring problem. While Venture Capital and Private Equity have helped some of the last startup enterprises, a vast number of startups are still struggling to raise funds from the institutional setup. The challenge of funding is not just imperfect to seed sequences, however also to crucial Sequence A and B series. For a startup looking to scale, the rounds are still hard to scale, as the number of investors who write big checks in India is very small. Critics argue that this is a challenge, however, and will always be on different sides of same coin; it is a challenge for some, a possibility for others.