In the Guide, we’ve outlined the most common reasons why small businesses are not approved for a loan, and how to overcome each obstacle. In fact, most negative credit decisions can be turned around in less than 6 months!! If you follow our Guide, you will have a much higher chance to get approved for a loan when you apply.
Top Reasons Small Business Loans Might Get Denied
When you apply for a business loan, the hope is you will get approved. However, if that’s not the case, you have to know there are a myriad of reasons why. Familiarize yourself with these reasons in order to improve your chances to get your next loan. Being denied a loan once does not mean you will be denied the next time around.
Some of the top reasons why a small business might get denied a loan from Camino Financial are:
- Incomplete application
- Unable to verify credit references
- Insufficient or unacceptable credit references provided
- Revolving credit utilization is at maximum or over-limit
- Insufficient value or type of collateral
- Insufficient equity capital
- Short or no financial operating history
- Insufficient management experience for credit type requested
- Declining sales and/or declining profitability
- Unable to support projected income cash flow
- Inadequate satisfactory credit history post-bankruptcy
- Delinquent past or present credit obligations
To learn more, and to study the reasons above in detail, download the Ultimate Guide to Getting a Business Loan.