Insights into the world of small business lending and development
What's Hurting Your Business's Chances At Financing, And What You Can Do About It
You’ve approached your lender and submitted a loan application only to find out you’ve been denied. This is, unfortunately, a common reality for many small business owners. In contrast to how they handle applications for a personal loan or credit card, lenders are much pickier when it comes to approving financing for small businesses. They see loans to these enterprises as riskier bets, since there’s a good chance they might fail and the lender will be required to seize assets or foreclose on property to get its money back. Lenders may reject your small business loan for a host of reasons. Maybe you forgot to completely fill out the application, only providing two years of tax returns when three were required. Perhaps your personal credit history has a few recent black marks. Possibly your business has struggled with its cash flow recently.