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It doesn’t seem fair, does it? You’ve worked like crazy to build your business to the point of its current stature. All you need is a little extra working capital to take it to the next level. The problem is your bank won’t loan you the money. You figured you were in great standing considering how long you’ve been a customer. Yet, your application for a business loan was denied. What do you do now?
Discover the problem with your credit history.
As far as you know, you’ve been paying your bills on time for quite a while now. But were there any missed credit card payments from years ago that may be impacting your credit score today? Have you missed a recent payment to a lender that you may have forgotten about? One of your first steps towards getting the funding your business needs is to dig deeper into your credit history to find out what you can do to improve your credit rating.
“Your credit history and credit scores are primary factors lenders consider when you submit a loan application,” Ben Luthi on Experian.com, If lenders see any significant negative items on your credit report or other red flags, they may determine that as a borrower, you’re too risky to approve at this time.”
Luthi lists the negative items that can cause a denial as bankruptcy, foreclosure, collection accounts, delinquent payments, high credit card balances, too many recent credit inquiries and not enough credit history.
Attempt to secure collateral.
A lack of collateral is often a reason why business owners are denied loans from banks. If you don’t own a home, company vehicle or any worthwhile business equipment, you’re not likely to have anything of value a loan officer can consider collateral. Perhaps, you’ll need to enlist the assistance of a friend or family member who can provide you with some collateral to help you attain a business loan approval.
“If you’re applying for a personal or business loan, collateral might help you get approved. Offer to pledge something of value to help secure the loan,” explains Justin Pritchard on TheBalance.com, “Just be aware of the risks: you could lose your home in foreclosure or your vehicle could be repossessed if you fail to make payments. Only take risks that make sense. It’s not worth using a home equity loan to pay for a vacation or a luxury car.”
Consider a merchant cash advance instead.
If you ask the Synergy Merchants team, the best route to take after having your loan application rejected is to apply for a merchant cash advance. We specialize in providing small to medium-sized business owners in Canada with this excellent alternative business funding source. One of its greatest aspects is the fact that neither one’s credit history or possession of collateral is a factor in getting approved!
Instead, we look only at your monthly credit card and debit card sales. A merchant cash advance is not a loan. It’s actually an advance on your credit and debit sales. There is no repayment schedule or accruing interest. Payments are made automatically through your credit and debit transactions and they include the coverage of a one-time fee you pay to accept the advance.
For more information about our unique merchant cash advance program, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at email@example.com. You can also apply online for a free, no obligation quote!