It is actually more common than you might think to be turned down by a bank for business funding. Whether you are a new business seeking startup capital or an existing small to medium-sized business going through a rough patch, you can probably expect to be denied funding by at least one lender. Don’t let that dissuade you. Sometimes it’s as simple as having applied to the wrong lender for your particular needs. Here are a few options you probably hadn’t thought of.
How to Find That ‘Match Made in Heaven’
Most small to medium-sized businesses (SMBs) go the traditional route when applying for funding. Typically, they will start with banks in their local region. Sometimes it will be a large bank with branches throughout the United States and other times it will be a local credit union or regional bank. It doesn’t matter if they don’t finance the type of loan you need. Have you considered trying an online search that uses a set of algorithms that match the kind of funding needed with those lenders or financiers best suited to the kind of funds you need? Online financial search engines like those on the Lending Express website are developed with precise algorithms that match your criteria with that of various types of lenders.
Conventional Loans Are NOT Your Only Option
The fact is that too many SMBs focus on conventional business loans. In recent years, the number of ways to fund business endeavors has literally exploded. On a site like Lending Express where the type of funding you need is matched with the types of business funding, you might be directed to apply for:
- Invoice Factoring
- SBA loans
- Line of Credit
- Asset-based loans
- Industry-specific loans
- Merchant cash advances
And, so forth. The point is, if you have been denied a loan at a bank, don’t throw in the towel just yet. You probably don’t meet that lender/financier’s criteria. That is one of the leading reasons for being denied.
The Problem With Repeated Applications
Before continuing to apply over and over again to various lenders, you need to understand what all those applications will do to your creditworthiness. Sometimes your business’ credit score will only take a soft hit and other times it may be a hard hit costing you points against your credit score. Even if you don’t take a hit, just think about all the time wasted and how discouraged you are likely to become. At some point, you just might stop searching for those funds you need to stay in a positive cash flow or maybe to expand operations.
Remember, there are always alternatives which can provide you with the business funding you so desperately need. It’s only a matter of matching your needs with a funding source. You use the Internet to find everything else from the daily weather to local events or sports scores, so why not use that very same Internet to find funding for your SMB? If you need funding, that’s the easiest and quickest way to find it. That’s something you can take to the bank!