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ALSO VISIT
Bad Credit
Business Financing
Facts About Credit - Credit Report
Annuities
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Start-up Loan | Loan
Application | Credit Application
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Bad Credit Start-Up Small Business Loans are
Difficult to Get.
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If
Your Start-UP Loan Application
Is Not Approved
Most lenders, banks
especially, are conservative in granting small business business
loans. Given the obligation to their stockholders and depositors,
they need to be sure there's a good chance the loans they make will be
repaid.
If your application for credit is not approved, find out the
reasons why. Some of the reasons that lenders often give for denying a
small business loan include, for example, insufficient owner's
equity in the business; lack of an established earnings record; a
history of slow or past-due trade or loan payments; or insufficient
collateral. |
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Finding out the reasons may help you
qualify the next time you apply. The lender will keep you informed
about the status of your application. If you are considered a "small
business" (when your business revenues are $1 million or less, or
when you are applying to start up a business), a lender has 30
days to let you know, either orally or in writing, whether or not you
get the loan. |
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The 30-day period begins after the
lender has received all of the information needed to evaluate your
credit request. If your application is denied, the lender must give
you either: a written statement
of the reasons for denial, or a written notice telling you of your
right to obtain the reasons in writing. This notice may be given to
you during the application process or at the time of the denial.
The lender also will keep for one year the records relating to your
application.
Equal Credit Opportunity Act
Obtaining a small business loan or credit can be a difficult
process for any business owner and especially for first-time
borrowers. But keep in mind that different lenders have different
standards.
If you did not
meet the standards of a particular institution, you may still qualify
elsewhere.
If you have a full understanding of
why the initial lender didn't approve your application, with time and
more attention to these areas, you can improve your proposal as a
result and may succeed the next time you apply.
Whether your business is large or small, if you are not granted the
credit, be sure to discuss any questions you may have with the lender. |
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Sources: Wikipedia, FCIC and other public sources.
Smalll Business | Small
Business Credit | Credit Application
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