7 Reasons Why You May Have Been Rejected for a Business Loan

7 Reasons Why You May Have Been Rejected for a Business Loan

Facing challenges in securing a business loan? Here are 7 common reasons and how we stand out, offering non-asset backed capital up to $600,000 to empower your small business:

 

Bad Credit Score: Traditional lenders often hinge loan approvals on credit scores, setting the bar at 500 or higher. For many small business owners, especially amid the pandemic, this requirement proves daunting. We can access lenders that distinguish themselves by assessing your file without impacting your credit score, with no minimum credit score prerequisites.

 

Incomplete Application: Providing accurate, comprehensive documentation is crucial. Incomplete or inaccurate paperwork can hinder lenders from assessing your cash flow position and extending offers.

 

Inconsistent Cash Flow: Lenders prefer businesses with steady monthly cash flows, showcasing the ability to meet repayment obligations. Demonstrating multiple, consistent deposits from diverse sources strengthens your application.

 

Existing Debt: Many lenders hesitate to approve businesses with existing loans. However, we can access lenders that remain open to funding businesses with existing loans, regardless of product similarity.

 

Limited Trading History: Longer trading histories often receive preferential treatment. While some lenders require a minimum of 12 months trading history, we have lenders that are open to businesses trading for at least 6 months.

 

Economic Uncertainty: Amid economic uncertainty, banks and traditional lenders may shy away from funding. However, we have lenders that have maintained funding stability throughout the pandemic with minimal adjustments to lending criteria.

 

Perceived Industry Risk: Certain industries are deemed “risky” by lenders, leading to application rejections. We can use lenders that remain open to industries typically restricted by other lenders, ensuring businesses across diverse sectors can access the funding they need.

 

How Can We Help?

We prioritise supporting businesses where others have declined. We focus on your current position and provide the capital necessary to thrive in the Australian small business landscape, irrespective of past rejections.