It is a simple fact of life that sometimes bad things happen to good people. If you have found that your bank has turned you down for a small business loan, you may be contemplating throwing in the towel, or if you’re of a more temperamental nature, throwing something against the wall. Before you despair, there are a few things you should know. If you’ve been turned down for business finance then your bank is legally obligated to give you information and refer you to another provider. This is part of the Small Business, Enterprise and Employment Act (2015). Rest assured all is not lost. Not yet. This scheme means that you’ll occasionally bounce from bank to bank and may find the door repeatedly slammed in your face by high street providers. This is not necessarily the end of the world.
What to do?
You need to find out why you have been turned down. Ask for as much information as possible. You may have been rejected because you’ve spelt some addresses wrong, or not double checked your information fully. Or it could be that your balance sheets just don’t add up the way that this particular bank wants. The more information you can get, the better a subsequent application will be.
Think outside the box
It might be time to consider avenues of alternative funding. The High Street bank is far less inclined to take risks compared to smaller alternative providers. Consider taking out a specialist loan specific to the aspect of your business you’re looking to support. Is this a start-up-loan? A tax loan? Vehicle loan? Equipment loan? It may be more productive and effective for you to apply with greater specificity and secure low-interest rates.
The most important thing is that you don’t lose hope. It can be very crushing when you have prepared a detailed application for a bank, jumped through numerous hoops only to find your application has been dismissed, seemingly out of hand. Now is the time to re-evaluate your position, consider whether your business is still viable and, if so, get creative and innovative about alternate sources of funding. Good luck.
Business loans – where to find out more
If you are needing finance to fund your start-up or expansion of your business, please visit our Alternative Finance page to find out more about the services we offer.
For more information about the services we provide, please contact us.