Declined Loan Application

Entrepreneurs spend hours and even weeks preparing loan packages for their lender. It is no surprise to us that emotions and frustrations run high when the business loan application comes back declined. Acquiring a loan is not a simple task. Here are some short cuts that will help you determine whether to pursue a loan request at this time or not. Discuss these things with your lender.

1. Your credit score and what’s driving it.
2. Know the strengths and weaknesses of your business (i.e. trends, liquidity and leverage).
3. Know why you need the loan. What is the purpose of your request?
4. Discuss in general your business and loan request with the lender.
5. Ask the lender if there are any “red flags” or “deal killers” with your request.
6. Find out if the lender has recently closed any similar loans to your request.
7. Be honest and identify the risks. It never pays to hide portions of the truth.

Following these actions will help you save time when looking for a loan. If you disagree with your lender get another opinion. Each lender has a unique personality, portfolio and expertise. Make sure your lender is competent with the type of loan request your pursuing. This will ensure you the greatest chance of success.

If you don’t know where to begin, give us a call to discuss your loan request. If your business loan application was declined, our consultants will help you understand why. The Hoffman Consulting Group will guide you through the process and prepare you to meet with the lenders. If your request will not qualify today, we will help guide you so you will qualify in the future.

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