While small business loans can be a great way to earn some extra money for your new business, sadly they don’t always work out. If your bank rejected your loan application, don’t lose hope just yet. There are a variety of alternative finance options available to you so you can get your business going. In this post, we’re going to take a look at some key things to consider when a bank turns down your small business loan and answer the question: Is there an alternative to small business loans?
Talk to your bank
The first step to moving forwards with your small business is to understand why your bank rejected your request. Your bank will have considered numerous factors before rejecting your loan, so knowing which ones had a detrimental effect on your application can help you move forward. It could have been your cash to assets ratio, your projected net profit margin, your credit score or even your experience in the business industry.
Your bank’s feedback may be challenging to hear, but it can lead to improvements in your business plan and a clear idea of your next steps.
Look into other loan providers
Alternatives to a bank loan include alternative finance providers such as Tower Leasing. There are many options to choose from; unsecured, secured against property, secured against debtors or invoices, short/long-term etc. One of the benefits of approaching a funder with the support of brokerage facilities is the panel of funders they work with and have access to.
Specialising in products and different finance offerings, this has provided businesses with a greater chance of moving your application further. Alternative finance has supported thousands of new start-ups, SMEs to established businesses to secure the funding they need without having the difficulty to fulfil the criteria of applying for a bank loan.
Look into leasing
If your loan was for buying business equipment, then leasing may be your more accessible and flexible alternative. This solution is cost-effective, offering a fixed price throughout the lease period and bypassing the problem of obsolete equipment.
Alternative to small business loans – where to find out more
If you’re looking for a straightforward provider of lease finance, get in touch with Tower Leasing. We can lease assets and equipment to small businesses, helping you to get where you need to go. We are currently helping businesses secure funding when banks were unable to help them. For more information, get in touch with us today or read more on our website about lease finance.