As a business owner, you’d surely understand that not everything is certain and that even includes loan of all kinds.
Some cases, you were rejected even if you did everything from drafting a plan and doing sufficient research.
When you’re ready to move past the initial rejection, you could start better positioning yourself for another application.
Here are five things you can do when you business loan application is rejected
Why you were rejected?
Ask the lender why you’re rejected in the first place.
To help reduce risk on the loans they make, lenders have their own requirements and match incoming applications against them. So, you didn’t qualify for a loan, there really should be a specific reason or two to why.
When you get denied a loan, you typically get a notification that lists the details and factors which contributed to the decision. Knowing why you were rejected in the first place is the first step towards fixing the issue.
Check your personal and business credit again
Your personal credit score has a major effect on your chances of getting a loan for personal or business use.
Lenders pull your credit score from differ credit reporting agencies, it’s important that you cross check what they have against what you have to ensure both sides have the correct information.
If you are applying for credit with your business’s name, even a solid credit report won’t be enough to approve your application. Businesses have their own credit reports and as a new business owner, a credit profile is likely no be non-existent.
Ensure the correct documents
When your application is rejected, you should also review the documentation that you’ve submitted for the loan.
Other than your credit score, your business’s financial status also plays a big part in getting approved for a loan. Lenders would want to see positive business data like healthy cash flow, strong earnings before consider giving out a loan.
If incomplete applications triggered your loan rejection, make sure that you have all the right paperwork for your next application.
As a small business owner, you don’t necessarily have to meet the variety of loan requirements or a loan advisor face-to-face to get a loan approved.
If you’ve done your research, you‘ll understand how standards vary from institution to institution, so take a look around an familiarize yourself with what you’re taking in. Things were different before the internet and even before the Covid-19 pandemic.
Don’t give up
Whatever the reason it may be that got your application rejected, giving up is not an option.
Analyze the elements that led to the outcome and perhaps even try to find other lenders that cater to specific people like yourself.
Finsource Solution recognizes the challenges faced by SMEs and offer 5 different loans and financing options that are perfectly structured to suit the needs of different business persons.
With a clean loan, property loan, 2 in 1 financing, gap financing and invoice financing suited to meet your financial needs, our loan advisors are ready for your questions 24/7, contact us today to learn more about how we can be off assistance to your financing needs.
Call: 03-2712 4333