It happens to many an aspiring entrepreneur. Sometimes, the lending institution just doesn’t accept your loan application. It may seem for a minute as if this is the end of your entrepreneurial dreams, but that could not be farther from the truth. You can absolutely apply again, and there are things you can do increase your chances the second time around. So what tactics can you take to ensure the loan application gets approved when you reapply? Read on for advice:
1. Improve Your Credit Score
Having a poor credit score is a common reason why a loan application gets rejected. If you have an unfavorable track record, the lending institution won’t have the faith that you will pay back their loan in a timely manner. But a credit score is not permanent, and you can turn things around by paying more attention to your accounts payable. Start by making sure you begin paying off all your debts in a timely fashion. That includes utilities, auto loans, mortgage, credit card payments, and any other money you owe.
2. Be Clear with Your Goals
Banks like to see that you have a clear outline in mind of how you want to use the money that will be lent to you. If your current loan application presents only a vague idea of why you need all the money and what it will be used for, don’t be surprised if the bank rejects you. The second time around, be sure to make things clear, organized, and concise. Lending institutions want to know that you have a solid plan for using the money and paying it back.
3. Don’t Reapply Until You’re Ready
Re-submitting the same application over and over will do you no favors in getting that application accepted. Lending institutions know if you have submitted the same application before, and sending in the exact same thing again will not help. In fact, it can hurt you, as lenders have a record of what you submitted previously. You will seem like someone who does not take feedback well. Instead, give yourself time to improve on your application before submitting it for a second time.
4. Use technology
Why approach only one lender when you can apply for funding on a platform like Biz2Credit’s and be introduced to several different lending options for the same amount of time and effort? Biz2Credit’s loan specialists can help you find the right loan product for your company.
It can be frustrating when a loan application is rejected, but just know that it is not the end of the world. For more information about small business lending or how to increase your credit score, call (800) 200-5678 or visit www.biz2credit.com.