For most small and medium-sized businesses (SMEs), their bank is their first port of call for commercial finance. So what happens when your business needs a loan, and your bank says no?
There are many reasons why a bank may reject a loan application, and it’s generally not straightforward to pin down the cause. Your bank might be unhappy with credit scores, cash flow, collateral, the amount of pre-existing debt or other external conditions. They may avoid lending to specific industries, early-stage start-ups or companies with poor business plans. It’s not always clear what the bank’s lending criteria are, and applications can fall through the cracks without a relationship manager who can champion your business.
However, if your bank has rejected your loan application, all is not lost. It’s not uncommon for SMEs to encounter difficulty when applying for a bank loan, but many alternative options exist.
As finance brokers with over 50 years of experience, we can help you navigate the complex waters of commercial finance. Unlike the bank’s impersonal call centre, your local ASC Director will take the time to discuss your situation and understand your financial requirements. We know the lending world like the back of our hands, so we can assist you in establishing your options. When we come to submit your application, we’ll ensure it’s in the most robust shape to secure the finance you need.
If your bank said no and you’re wondering what to do next, get in touch.
