Skip to main content

FIVE REASONS YOUR BUSINESS LOAN CAN BE HELD UP

The approval rate for small business and bank loans is barely over 15%, which means numerous well-meaning and potentially wildly-successful businesses are not getting the funding they need to operate. In many cases, these rejections are the result of a fairly obvious red flag for traditional lenders, such as a low credit score or not enough business income, but others may be a little less well-known. On this blog, we take a look at five reasons why traditional financial institutions (such as banks) may reject your loan application.

YOU HAVE A LIEN ON YOUR BUSINESS
There are two types of liens that can limit your access to traditional financing options or cause your application being rejected: a tax lien and a UCC lien. A tax lien is levied on your business if you don’t pay your taxes in full and on time and fail to arrange to pay your debts. A UCC lien is a lien that can be filed by your bank or lender to put them first in line to your property rights in the event of a default. Both of these are intended to allow institutions to recover money they are owed, but traditional lenders or banks can still see them as a potential red flag that can slow your loan approval down significantly. At Instant Loan, we have options for business owners who, despite having these liens placed against their business, may still have access to working capital.

YOUR BUSINESS IS TOO HIGH OF A RISK
Every type of business is classified under certain numbers by either the Standard Industrial Classification (SIC) or the North American Industrial Classification (NAICS). If a lender sees numbers that indicate your business is a “high risk,” they could reject your loan application. Some examples of high-risk businesses include restaurants, real estate investment, and the travel industry. Fortunately, we specialize in providing working capital to small businesses within virtually every industry as long as there are steady deposits coming in to the business checking account.

YOU’RE USING REAL ESTATE AS COLLATERAL
There are two reasons your real estate can be rejected as collateral, thus leading to your loan being denied: you have a mortgage on your property (which forbids it from being used as collateral), or you have not received an adequate appraisal. Most banks and financial institutions require that they possess a recent appraisal from a third party in order to determine if they can accept it as collateral.

YOUR BANK STATEMENTS DON’T REFLECT YOUR REVENUE
If you’re looking for a short-term loan of 18 months or less, your lender will likely request to see your financial statements from the last three months. If you run a seasonal business, your income numbers will likely be much lower during your slow period than they would be at your peak. Therefore, you want to apply for your loan either during your peak season or just after it to prove you can pay back the loan.

YOU’RE ASKING FOR TOO SMALL OF A LOAN
Initially this may seem counter-intuitive, but you have to remember that banks are businesses, and are in business to make money, exactly like you are. Banks and lenders have fixed costs when they give out a loan that they must recuperate in order to make a profit. If you’re asking for too small of a loan, especially for a short-term loan, then the interest they make may not pay for their expenses in giving you the loan. However, this does not mean that you should take a loan larger than you need; you will be paying more in interest on money you didn’t actually need in the first place. Instead, look for a lender who will give the loan you at the amount you need.


LOOKING FOR WHERE TO GET AN INSTANT LOAN? APPLY WITH US NOW!!!
Do you need an Instant Loan? Apply for a loan online with us. Instant Loan, is an Internet-based direct-to-consumer lender. We specialize in providing loans for customers with less-than-perfect credit. We can help you with a genuine loan. Our loan services include...

1. PERSONAL LOANS
2. BUSINESS LOANS
3. MORTGAGE / HOME LOANS

Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan. We give loans worldwide - to any country. Talk to us now!

To apply for an instant loan contact our e-mail: instantloans.plc@gmail.com

Comments

Popular posts from this blog

I need a loan - Get an Instant Loan Here!

LOOKING FOR WHERE TO GET A LOAN? APPLY WITH US NOW!!! Do you need a quick loan? Apply for a loan online with us. Instant Loan, is an Internet-based direct-to-consumer lender. We specialize in providing loans for customers with less-than-perfect credit. We can help you with a genuine loan. Our loan services include... 1. PERSONAL LOANS 2. BUSINESS LOANS 3. MORTGAGE / HOME LOANS Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsecured loans. Even without a collateral, we can still provide you a good loan. We give loans worldwide - to any country. Talk to us now! To apply for a loan contact our e-mail:  instantloans.plc@gmail.com

Looking for a Small Business Loan?

Over the past 5 years there has been a huge increase in the options available to small business owners looking for financing. It’s a lot easier these days to get financing that it was 10 years ago. However, with so many choices, it’s a lot more difficult to figure out which  option is best for your small business. Rosalyn James, the CEO of Instant Loan provided some comments and advice on business financing to writer Henry Kivitt at Small Business Central. Apply for a business loan with Instant Loan below. Do you need a business loan? Apply for a business loan online with us. We can help you with a genuine loan to start a business or even to expand your existing business. We also lend personal loans, auto loans, truck loan, equipment loans, debt consolidation loans, home loans, mortgage loans, agricultural loans, small business loan and commercial business loans. Amount ranges from $3000 to $20 million. Repayment period is between 6 months to 25 years. We offer secured and Unsec...

How to use working capital for your grocery store

Grocery stores are an industry in high demand; people are always going to need somewhere to purchase food and other household items. Running a profitable grocery or convenience store requires hardworking employees, consistently replenished inventory and financial planning, among other aspects. If you’re reviewing your grocery store business plan and can think of costs that you’re having trouble paying for, it might be time to consider applying for additional working capital from a lender. 1.  Purchase inventory  – A well-stocked store will bring in flocks of customers, but bare shelves lacking in updated products will send them out the door. As a business owner in this industry, ensuring that your store’s inventory is regularly restocked should be a top priority. In addition, offering a wide range of products in different areas is also crucial; your customers will likely want options. Many shoppers will want healthy items as well. These products might be more expensive, but y...