So your business loan application was rejected by the bank.
The important thing is to figure out what went wrong with your application. Were there glaring errors or gaping holes in your finances? Did you lack experience in your industry?
Sometimes approval or rejection depends a little on luck, but oftentimes there are things that you can improve to make your application more likely to be accepted the next time around.
1. You Are a First-Time Entrepreneur
Ah, the cruel cycle. You can’t get a loan because you have no experience, but how can you get experience without a loan? The only way to get over this obstacle is to have a great business plan, outline your great and unique idea, and have the professionalism and knowledge to prove it. If you do this, then the fact that your resume shows little entrepreneurial experience won’t matter as much.
2. Your Application Contained Errors
Whether they be typos, grammatical errors, or financial miscalculations, mistakes reflect poorly on you. You will seem unprofessional and careless, and readers will get the impression that you did not care enough about this application to double-check it for errors. So double-check to make sure you didn’t make silly mistakes! Have a trusted friend or business partner look over it as well.
3. You Were Rude
The way you behave towards the loan officer does play a role in the success of your application. If you appear bored, disinterested, or arrogant, your application is less likely to be accepted. Instead, be courteous and patient; remember, the loan officer’s impression of you can greatly affect your future!
4. Your Idea Has Already Been Done
If your business idea is bland or unoriginal, your loan application is less likely to be accepted. Loan officers know that the likelihood of success for yet another small business entering an already saturated industry is rather low, especially in today’s economic climate. See if you can tweak your business plan to fulfill an unchartered territory within the industry.
Biz2Credit can help you figure out the best path to take. Loan specialists can help you navigate through the array of options to pick the one most suitable to your business. Visit the website or call (877) 861-2210 for help.