In the past, small business loans were regularly applied for and given through traditional banks and high street lenders, where company owners got to know their bank managers and could build a strong relationship over time. Times change however, and these days it might seem harder to get an application for a small business loan over the line.
There are several reasons that regularly pop up with our clients as to why they have been rejected by other sources of credit, and in every scenario, the First4Commercial team has the network and experience to help out.
• Some have only applied for a business loan through a traditional bank, which as stated above is no longer a sure-fire route to success as it might have been back in the day. It is important to look at all available options and not be disheartened by rejection in this way.
• Some have been rejected because the business they run is not as established as certain lenders like to see during an application process. It’s a bit of a catch-22 situation with this where you need financial help to grow, but are being blocked because you haven’t grown.
• It could be that the credit rating linked to the business is poor or not yet at a good enough level where it is deemed acceptable by most lenders when looking at affordability and risk studies on the business applicant.
• The sector the business operates in is in might be looked at unfavourably and too high risk to award a small business loan – an industry such as construction for instance.
• The business does not have enough collateral, without enough assets to secure the loan against.
• There are inherent cashflow challenges present within your specific industry or business that are understood to be the norm.
For more information about our network of business finance lenders please feel free to speak with the First4Commercial team today on 01277 620083 or email@example.com.