What to do after Getting Your Small Business Funding Rejected by a Bank
August 7th 2017 at 12:49pm Published by sharpshooteradmin
As a small business owner there will come a time when you will have to head towards a bank or any other financial institute for assistance related to funding. You should make sure that you have all of the desired documents covered when you apply for the funding, so that no stone is left unturned.
If you have already applied for funding through a bank and have had it rejected, then there is no need for you to worry, as we believe it is time that you move on with the process now.
Funding rejection from the bank shouldn’t stop you from wanting to try other options and avenues, which is why we believe that the following process can help you out:
Talk with the Bank
When you hear that your funding application has been rejected, the first thing you need to do is talk with the bank and make sure that they hear you out and give you a possible reason. Most banks reject funding applications based on previous credit scores, which is why you should look to improve the previous credit score, if that is the reason behind your
Talking with the bank would give you the clarity that you need to move onwards. Also when you are talking with the bank, make sure that you know what improvements would be required at your end to get funding approved from them. If you feel that your funding was unjustifiably rejected, this is the time to speak it out with them. Do not let them get away with rejecting your funding application in an unjustified manner.
Reapply to Another Bank
If you feel that there was no problem in your financing application and that the bank is at fault for rejecting it, then you should continue the process by reapplying with another bank. You should reapply with another bank, as that would give you the clarity you need to move forward with the application.
While you might be looking to answer your questions, we believe that reapplying with another bank will not change your fate once your application has been rejected once.
Consider Alternative Financing
You should consider an alternative means of financing if you feel that banks aren’t where you should be knocking at. There are multiple private funders online that provide customers and businesses with small business funding meant for helping them in a cash crunch. If your application was rejected because of a poor credit score inside a bank, then you don’t have any reason to worry anymore, as this is the alternative financing method you need. Private funders online allow you small business funding even if you have a poor credit history.