Confusion. Anger. Anxiety. Hopelessness. These are just some of the powerful — and perhaps overwhelming — emotions you may be feeling in the immediate aftermath of having a business loan rejected.
On top of this, the problem you’ve been struggling with still remains, and is getting more urgent by the day: you need business financing to pay for a pressing expense, necessary investment, or golden opportunity.
However, while having a business loan rejected is stressful — and also infuriating — the important thing to keep in mind is that you aren’t stuck and you can’t stand still. Here’s what you need to do right now:
Step 1: Get the Facts
The first step is to find out why your business loan was rejected. Before sending out more applications or re-submitting your original loan, you have the right to know what boxes you didn’t tick during the assessment and evaluation of your application. While you may not agree with a lender’s reasoning, it’s an important step to understand why you were turned down so you can fix that particular issue before applying again or look for another lending source.
Step 2: Fix and Fortify (if Possible)
Once you make a list of the reasons that led to your business loan rejection, see if there are practical and affordable ways to fix and fortify your application. For example, the business plan that you submitted may not have been detailed enough, or your business credit score might not be high enough (note: if this is the case, then it might not be due to any major dings on your credit record, but because like many other business owners, you may not have even known that you had a business credit score in the first place until you applied for a loan).
Ideally, you’ll be able to take care of any gaps in your application and can re-submit. However, it’s more realistic to expect that some issues cannot be resolved in the immediate future to your lender’s satisfaction, such as if you don’t have enough collateral to secure a loan, if you haven’t been in business for long enough, if your business isn’t profitable enough, if marketplace or industry is deemed too risky, and so on.
Step 3: Call National Business Capital
Once you’ve done your homework by identifying why your business loan was rejected, and confirming that there’s nothing practical or affordable that you can do to meet your lender’s requirements, the next step is the simplest, and in 90 percent of cases it’s also the most successful: call National Business Capital.
Why “90 percent of cases”? Because the approval rate across all of our business financing solutions is around 90 percent, which is about 4x higher than big banks. Here are some of the key reasons why when other lenders say no, we usually say yes:
- We don’t insist on excellent personal or business credit. Impaired or bad credit is fine, because we’re much more in interested in what a business owner is doing now and has planned for the future, than what may have transpired in the past.
- Our business loans adjust to you. For example, we offer many unsecured business loans, such as our working capital loans, business lines of credit, merchant cash advances, and so on. As such, there’s no need for collateral if you don’t want to sacrifice personal assets or if you don’t have enough assets to cover your loan.
- We don’t require years of business history — a few months is fine. Again, our focus is on the future: not the past.
What’s more, since we know that in the business world time is of the essence, our application process is streamlined and rapid, and can be started online in as little as 10 minutes. We also render decisions within 24 hours, and are available to provide ongoing post-loan support and guidance 24/7/365.
The Bottom Line
Having your business loan rejected is obviously stressful and might even be shocking, but be assured it doesn’t spell the end of your business. You have more options than you realize — including some that could be far superior to your initial plan.
Contact us or launch a web chat with a National Business Capital funding specialist now. It could be the most profitable and stress-relieving conversation you have all year! Or, fill out our two-minute application, and we can help you find a loan option that’s right for your business.
For more information on how to get business funding when banks say no, download our FREE eBook today: