You, like many other entrepreneurs, probably began your search for capital finance for your business by making a loan application to a bank. Your loan application was rejected, or you fear that it might be, and are now on the internet searching for an explanation for this. Rejection for business loans is not uncommon in Australia, even with short-term loans direct lenders only. You may have failed to gain the lenders trust and confidence in your repayment capability due to a number of reasons.
- Lack of proof of income
Unless you are applying for short term loans Brisbane, chances are that you will have to wait for 30-45 days to get your first payment. First of all, this is inconveniencing if you need the money urgently. And there is also a possibility that you could be denied the loan if you provide insufficient evidence of your ability to make enough cash to repay the loan. Even with short-term lenders, it’s important to be able to demonstrate your ability to make monthly payments. This means you must have some sort of income.
- You want money for a start-up business
It’s no secret that less than half of new small businesses make it past two years, and an even fewer number celebrate their five years anniversary. Only short term loans direct lenders only are usually willing to approve a loan for businesses with no established trading record. The main reason that many of the businesses fail is poor cash flow; if only they knew the secret to maintaining a good cash flow is a good relationship with short term lenders they could have saved their businesses.
If you only want to get a loan from a traditional financier like a bank then you can improve your chances of loan application approval by putting up some asset as security. Alternatively, you may want to request a personal loan to get going. It’s easy to get this type of loan from online lenders. And of course, there is always the last option of asking friends and family for assistance.
- Poor business credit score
You should not be deceived into believing that your business credit score is the most important consideration for having your short term loans Brisbane application approved. Nonetheless, a bad credit score is likely to taint the impression that lenders have on you and may be one of the reasons for being denied a loan.
What Next After Being Denied a Loan?
The rejection of a business loan application may be very discouraging, but if running a business was easy, everyone would be doing it. Explore other sources of short term loans direct lenders only and don’t give your business an opportunity to make the statistic of failed new small businesses.