How to Manage Funding Rejection from a Bank
July 29th at 6:11pm Published by firstdownadmin
Getting your small business funding rejected by a bank can be quite a heart breaking experience for many entrepreneurs. The reason behind this being that you weren’t expecting the rejection to happen, and now have to think of different options to get your hands on the funding that you are looking for.
This can all be a bit too much to happen for you, which is why the best technique for you is to stop crying over spilt milk and look for other options.
Applying for small business funding through a bank can be quite a troublesome process and we realize that you might have waited a long time to get these proceedings started. Banks usually take around a month for processing your information, and to see your funding application being rejected at the end of this can be quite taxing to manage for some businesses.
However, all is not lost for you, as you still have a lot of other avenues available for getting the small business funding that you desire. Here we discuss these avenues to make sure that you don’t have any problems going forward with the deal.
Know the Reasons
The first thing you need to do after the rejection is to know the reasons behind it. You can only improve your funding application when you know what exactly is lacking inside of it. You cannot improve your funding application without the reasons behind a possible rejection. If you want to improve your funding application, you should ask the reasons behind the rejection from the bank. Only when the bank gives you a substantial reason, should you proceed forward. Most small businesses get rejected for funding because of poor credit history, short time operating and insufficient revenue. If you have any of these reasons given for the rejection, you can decide your future moves accordingly.
Apply in Another Bank
Knowing the reasons behind the rejection from this bank, you can apply in another bank to improve your credit score and to make sure that nothing is found lacking. If you want to improve your credit score you should make sure that everything is on track and there are no anomalies whatsoever.
Get in Touch with an Alternative Option
Besides looking for banks as the only source of funding, you should also look for alternative options to make the progress forward. By alternative options we are hinting towards private lenders, which are relatively more relaxed than banks would ever be and approve your funding without nitpicking errors in your application. The processes they follow for small business funding are quick, and you can even get the funding approved with a poor credit history.