4 Reasons Why Your Business Loan Applications are Being Rejected (Spoiler Alert: We Can Help)
Tired of your business loan applications being denied?
Seeking a loan for your small business can be disheartening. There's a ton of red tape, numerous hoops to jump through, weeks or months of back-and-forth with the bank. It's a lot... especially if you've had financial difficulties in the past.
We've compiled a list of four of the most common reasons why your business loan applications are being rejected.
1. Low credit score. The majority of business lenders check your credit, and your application will be immediately denied if it does not meet their minimum requirements.
2. Your business is "too young." As part of your application, you are asked to provide documentation proving the lifespan/longevity of your business, and many lenders will not consider funding companies that have been in operation for less than one year.
3. You don't have enough collateral. Banks are usually risk-averse, meaning they're not willing to take chances. That's why they ask you to put up collateral – as an assurance that their investment in your company is worth the risk. If you don't have sufficient collateral, your application is often tossed immediately.
4. You don't have enough cash flow [working capital]. Banks want to make sure the businesses they lend to are making more money than they're spending. Working capital is a company's liquid assets that fund its day-to-day operations. Banks use your working capital as a metric to understand your company's financial health. [More info on working capital here.]
Tired of being put through the wringer only to have your applications denied?
We can help.
At Elevate Funding, we specialize in "support" funding. What does that mean? It means we're much more willing to take a chance on businesses, regardless of past financial difficulties. We offer flexibility, a fast turn-around, and best-in-class customer service.
We do not provide loans – we provide Merchant Cash Advances (MCAs). Again, an MCA is not a loan – it’s simply a way to get access to your future sales immediately.
The MCA application process is simple and quick, and we are able to fund companies in as little as 24 hours. There are no restrictions on how you use the funds, and we do not check credit (for our standard MCA product), charge outrageous fees, or require collateral.
So, to resolve the common reasons for loan denial mentioned earlier:
1. Low credit score. Not a problem. We don't even need to check your credit.
2. Your business is "too young." We only require three months in operation.
3. You don't have enough collateral. We will never lay claim to any of your assets.
4. You don't have enough cash flow. Our job is to give you working capital.
At Elevate Funding, transparency and honesty are at the core of what we do. When you select us as your funding provider, you are placing a safe bet on your financial future. We want to see our merchants succeed, and we will do everything in our power to work with you on your specific needs. We know small business, and we’re here to help.
If you need funding and wish to speak to someone now, please call us at 888-382-3945 or click here to send us an inquiry. One of our teammates will get back to you as soon as they are available.