A recent article, The Next 5 Steps to Take After You’ve Been Denied a Small Business Loan by Jared Hecht says that it is very disappointing to see your business dreams halted by the denial of your first small business loan. You feel rejected and have no idea what to do next.
Here are the next things you should to after a business loan denial to ensure a successful loan in the near future.
1. Figure out why your application was declined.
Understanding why you’ve been denied will allow you to address those specific concerns before seeking funding again in the future.
2. Check your business and personal credit reports.
Your personal and business credit score has great impact on your loan application. So ensure to check your personal credit report/score for any discrepancies or overdue that may have contributed to the denial. Also, if your business is relatively new, you should establish your business credit by asking vendors, creditors or even the proprietor of your retail property or office space to report your payment history to major business credit reporting services.
3. Improve your business’s financial standing.
The strength of your annual income, cash flow and business savings is also critical in your loan application. Taking an objective feedback from your lender may help you to determine what steps you can take to improve your financial standing or choose a loan product that will be a better fit. You may consider applying for a lower amount of funding in order to increase your chance of approval until you can establish your business’s financial standing.
4. Apply carefully the second time.
This time make sure that all the required documents are accurate before submitting to avoid the risk of denial for the second time.
Being rejected in your first small business loan is not the end of your business financing journey. If you’re looking for workspace solutions while waiting for next loan approval, YourOffice offers you a wide choice of office and workspace solutions: virtual office space, meeting room access, and coworking office space. You’ll have access to a complete array of office support and concierge services as well as state-of-the-art business technology.