Title: 5 Reasons Bussiness Are Rejected For Short Term Business Loans
15 Top Reasons Behind The Small Business Loans
Rejection
2- It can be a challenge for small business owners
when discussing with the banks for acquiring a
business finance or short term business loans . - As per a recent study, around 50 to 55 of small
business owners nationwide successfully obtained
probable finance and loan packages of the sum
requested over the past one year.
3Top 5 Reasons Behind the Rejection of Small
Business loans are as follows
- No Preparation
- Looking for Small Loans
- Poor Cash Flow
- Bad Credit/ No Credit
- Lack of Collateral
4No Preparation
- Some business owners are rejected for a loan
and the simplest example is that they have failed
to follow the set procedure. Some business owners
arent aware of the application procedure and
think that they can just walk into a bank, fill
out a form and walk out with a bag full of cash. - Unluckily the procedure is somewhat more
intricate and there is a long list of
comprehensive criteria that small business owners
need to meet to get a Fast Cash loan request
approved.
Continue.....
5Continue.....No Preparation
- Prior to applying for a short term business
loan, businesses will require submitting the
latest up-to-date written business plan, a period
of bank statements, comprehensive financial
statements, personal and business credit reports,
tax returns etc. - They must also have copies of applicable legal
documents that include contracts, leases and any
applicable licenses and permits etc.
6Looking For Small Loans
- It is documented fact that many small
businesses put in their applications for medium
sized loans totalling less than 100,000
regrettably, in this respect, banks want to
finance bigger loans because its more profitable
for them. - To process a 60,000 loan and a 1 million
loan, it costs the bank around the same amount
however, the 1 million loan will make a greater
return and so it is more profitable for the bank. - Thus, small business owners should be
conscious that a loan request should be as
sizeable as possible, obviously within the sphere
of possibility in terms of meeting a repayment
plan on a timely and regular basis.
7Poor Cash Flow
- Suppose your business has a very tight margin
then it is recommended to work toward reducing
expenses or finding ways to make revenue and
strengthen a credit report prior to applying for
a small business loan. - For similar businesses, cash flow will always
be a challenge the right timing of discussing
with a lending centre or traditional bank will be
influential in negotiating a positive outcome.
8Bad Credit/ No Credit
- A credit score is a measure of overall credit
worth of an individual or a business. Generally
its very much hard to get bad credit loans for
businesses. - Before coming to lending decisions and/or
setting interest rates, banks predictably will
inspect both personal and business credit scores.
Failed or late payments or a period of bankruptcy
etc. will result in a low credit score.
Continue.....
9Continue.....Bad Credit/ No Credit
- In some cases, a small business may simply be
too new to demonstrate adequate credit history to
qualify for a business loan. - To improve your credit scores, it is
recommended to spend prudently under the credit
limit, make regular timely payments as well as
uphold existing accounts in a good financial
state.
10Lack of Collateral
- Conventional banks usually need a type of
collateral, possibly a piece of property, which
can act as a guarantee for a loan in the event of
failed or slow repayment. The bank may be
reluctant or hesitant to commit to a finance
package or loan wherein small businesses dont
have significant real estate property or
equipment to provide as a type of collateral. - Homes and cars are the regularly accepted
forms of collateral by the traditional banks.
Predictably the amount a bank will loan relies
upon the total worth of the asset(s). If the
small business owner doesnt have enough asset(s)
which the bank regards to be of adequate high
value, the probabilities of obtaining a small
business loan will not materialise.
11Pawnbrokers Can Assist Small Businesses Even If
You Have Bad Credit
Small businesses can still get same day business
loans from reputed pawnbrokers or pawn shops!
Based in Sydney, Cash Fast Loans is a trusted car
pawnbroker and moneylender who provide short-term
business loans without any credit checks. Get
detailed idea about The Significance of Instant
Short-Term Cash Loans.
12Contact Us
Name
Cash Fast Loans - Car Pawnbrokers Moneylenders
10 North Rocks Rd, North Parramatta, NSW 2151
Address
1300 227 432
Phone No
www.cashfast.com.au/
Website
www.facebook.com/cashfastloans
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