{"id":472,"date":"2022-02-17T11:21:09","date_gmt":"2022-02-17T11:21:09","guid":{"rendered":"https:\/\/www.businessadvancelenders.com\/blog\/?p=472"},"modified":"2024-02-03T10:30:55","modified_gmt":"2024-02-03T10:30:55","slug":"rejected-a-business-loan-we-can-help","status":"publish","type":"post","link":"https:\/\/www.businessadvancelenders.com\/blog\/rejected-a-business-loan-we-can-help\/","title":{"rendered":"Rejected a Business Loan? We Can Help"},"content":{"rendered":"

\"Rejected<\/a><\/p>\n

Getting declined a business loan is not a very rare occurrence. If you\u2019ve applied for an SBA or a bank loan for your business, statistics state your chances for loan approval. Depending upon the location and industry of your business \u2013 are likely to vary from 20% to 70%. This means, there are 30% to 80% chances that a business loan application fails to materialize.<\/span><\/p>\n

Loan rejection may translate to a missed opportunity for some businesses, for others, it may lead to financial shortcomings. Even major financial trouble, including even a significant hit on the credit performance, and further loan rejections. But, depending upon the eligibility of your business, there may be a way in which your business can still get a loan, despite having faced loan rejections.<\/span><\/p>\n

What can Lead to Loan Declinations?<\/h2>\n

While many factors can cause a loan to get declined, the most common ones are:<\/p>\n

    \n
  1. Excessive debt<\/strong>: If the ratio of debt to income is high, your loan request likely get rejected<\/span><\/li>\n
  2. Poor credit performance<\/strong>: Bad credit scores (both business and personal) often lead to loan rejections<\/span><\/li>\n
  3. Insufficient collateral<\/strong>: Traditional loans need collaterals and if the ascertained value of the collateral provided isn\u2019t enough to cover your loan, its interest, and the cost of recovering the collateral value, your loan will likely to rejected<\/span><\/li>\n
  4. Limited credit history<\/strong>: When the credit history is insufficient to make decisions, loans can be kept on hold or even declined<\/span><\/li>\n
  5. Bad performance<\/strong>: If the operating figures of a business are indicative of poor or declining health, loans are likely to be declined<\/span><\/li>\n<\/ol>\n

    What Poor Credit Could Lead To<\/h3>\n

    Bad credit scores are no good news for a business or an individual. Apart from making loans very difficult to secure, bad credit may cause further damage to businesses. These often include:<\/span><\/p>\n