Refused a bank loan? Here's what to do next

Refused a bank loan? Here’s what to do next

Business Finance, News

It’s a familiar conundrum. You need money, fast. There’s an unexpected cost in your life, such as medical bills, losing your job or an accident at home. But you were refused a bank loan when you applied. Don’t panic though, because there are a lot of things you can do to get your finances in check.

Find the problem

When you realise there is a problem, start by going through your spending to see where your money is going. List all of your incomings and outgoings to see where your money is really going and cut back on any unnecessary spending – for example, could you spend less on clothes? If you can instantly cut down your spending, you’ll remove some of the immediate pressure of your financial problems.

Seek advice

If you find yourself borrowing to pay off debt, or you’re awake worrying about your money every night, it’s time to seek help. Turn to the Citizens Advice Bureau or the Debt Advisory Service for in-depth advice on your personal situation.

Emergency spending

Perhaps you’ve always managed your finances well, but a sudden event has you worried. Perhaps you just need some cash to get through the month or to cover a sudden cost. Payday loans can be a great option, as their higher interest rates mean that even with a poor credit score, you can access them. They will usually be for a smaller amount and will be paid back within a month.

Can you make money fast?

Making money fast is another way to get out of a financial dilemma.

First, consider if you have any items around your home which could be sold or pawned. If you have a lot of books or clothes in good condition, these could be sold online or well-worn clothes could be sold per kilo to make some quick cash.

For higher value items, pawning them is a way to access credit when you have a poor credit score. You’ll be able to borrow money and, once you pay back the loan, you can retrieve your item.

Find a side hustle

If you have a skill you can share for a profit, such as tutoring, cleaning, writing or accounting, use those to find freelance work. Even offering to take on ironing for neighbours and doing this in your spare time could bring some quick relief to your finances. Otherwise look for a job with a contract of four to 10 hours a week that you can fit in around your work.

Refused a bank loan – where to find out more

There are many other alternatives to a bank loan if you’re looking for finance for your business. Instead of buying equipment and vehicles, you could try leasing them or you could look at alternative finance options that will help you grow your business from strength to strength. We can help, take a look at our business finance section to find out more. Or get in touch if you’d like to discuss how we can help. We have access to alternative finance providers and can help with short-term business loan to help you achieve your business expansion goals.

Image: Money by free pictures of money licensed under Creative Commons 4.0

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