So your small business loan request was denied by the bank? Now what? That’s a question that many entrepreneurs and small business ask themselves after they are turned down by a bank. The good news is that you don’t have to feel discouraged or defeated after having your small business loan request denied. You may have other options. One of the first things you should do after being denied for a small business loan is ask the bank why. Don’t settle for a generic denial letter. Call the bank and ask for a detailed explanation of the reason for denial.
Search for Other Small Business Loan Sources
There are many ways to obtain a small business loan for your business. Banks are not the end all be all. After learning why the bank denied you in the first place, you’ll have a better understanding of what you need to do to qualify. Once you have a better understanding of what you need to do to qualify, you can work on it. You can also seek out other financing sources that may not be as strict as traditional banks.
A Small Business Loan Broker Can Help
To save time, I suggest working with a small business loan broker to obtain financing for your business. The best small business loan brokers work with different lenders that offer different types of financing. They also understand how all of the different types of small business loans and financing options work for small business owners. They will be able to clearly explain the differences between financing options so you will know what you are getting into before you accept anything.
How to Identify the Best Small Business Loan Broker
All small business loan brokers are not created equal. Some are only out to make money off of you. That’s why it’s important to do your due diligence before choosing the small business loan broker you will work with. Find out how long they have been in business and ask for verifiable references. You should be able to reach out to the references if necessary. Also conduct a Google search to find out if they have any complaints online. If you find any complaints, speak directly to the small business loan broker about them. Sometimes people can write unwarranted complaints online so it’s best to ask the small business loan broker what happened (before jumping to any conclusions). Using LinkedIn to find out more information about them might also be helpful. Most of the best small business loan brokers online have a LinkedIn profile with recommendations. At the end of the day, use your best judgment. If what the small business loan broker is telling you sounds too good to be true, it probably is.
LenCred is an Expert Small Business Loan Broker
The LenCred team specializes in helping entrepreneurs and small business owners obtain unsecured business lines of credit. However, they also have access to other financing sources. They can help you figure out what will work best for you based on your unique situation. If you’ve already been denied by a traditional bank and you are unsure why, LenCred may be able to point you in the right direction. They will analyze your personal credit history and let you know if you qualify for unsecured business lines of credit. If you don’t, there may be other types of financing they can recommend. Depending on how long you’ve been in business (amongst a number of other factors), you still may be able to qualify for a small business loan.