A loan may be the best solution for you, but what happens when a lender denies your loan application? Is there a permanent record of your denial? What can you do about the reasons for the denial? Can denial be appealed?
The first step in handling a denial is to carefully review the credit denial disposition correspondence that your lender should have sent by email, fax or regular mail. In that way, the reason must be clearly verified so that you know why a subscriber or lender decided not to continue with your application.
If your denial is based on correctable problems, such as credit scores or referrals, necessary home repairs or judgment / collection of satisfaction accounts, then you can establish a plan. Your loan officer may be able to talk to you more clearly about the details of your situation, but, in general, you could start working with any unsatisfactory credit reference by paying a judgment or collection account; perhaps, you could do the repairs in your home or car to comply with the evaluation of the guarantees necessary to meet the approval standards.
Contact the loan officer you worked with to apply for the loan. Ask him what prevented him from qualifying. Numerous factors come into play for loan approvals, such as credit score, gross income or business time. The more information you have, the better you will be when applying for a loan in the future.
Do your research
The negative message is that it did not qualify because of a weak cash flow, a low credit score, insufficient guarantees or another reason. The good news is that there are innumerable resources on the web to help address these problems and maximize the performance of your company. Research and find out what you can do differently to change these problems, which will eventually help your business run more smoothly.
Explore alternative lenders
Some people, like business owners, often do not turn to alternative lenders because they feel that a common route will be easier or more structured, but this is definitely not the case. Alternative lenders will usually simplify the loan method; most do not require high credit scores or collateral at all. Several options of lenders allow you to apply for a commercial loan online, accelerating the process even more with web-based processing and, therefore, a faster response time. These companies take pride in their ability to finance deals quickly, which means that your company will get the cash it needs much faster.
The most important thing to do when you are denied a business loan, car loan or any other loan is that there are always other options, and an alternative business loan is often the best option for your company to get the funds you need to follow running smoothly and even expanding.
If your loan is denied, there is usually no appeal process. However, what may happen is a new application so that a new loan number can be generated separately from the registered denied loan number. Especially, if you are working to handle some of those solvable reasons, it makes a lot of sense to stay with your lender since you have already had the opportunity to become familiar with your general situation.
Contact a trusted person today to find out how your business can obtain an unsecured commercial loan, a cash advance for merchants or a working capital loan.