Was Your Loan Declined? What Next?

Having your loan request denied can be very frustrating. It is important to remember that although the loan was denied, you still have options. You may try another bank to get a second opinion. This is what the Hoffman Consulting Group specializes in. When your loan is declined by a particular bank, the Hoffman Consulting Group reviews your request to see if the loan could be serviced by another financial institution. This allows you to find the same conventional money but with a different banking partner.

There are economic development organizations that receive funding that may be able to assist you. These organizations typically require a bank decline before they will consider your business for financing.These organizations each have different requirements for loans but are designed to help business owners get the money they need. They also offer consultation and planning services that have proven to be a great resource for many businesses.

Private capital may also be available. Although this is most expensive way to get the money you need it is still an option. Some private investors will want ownership of your company and some will issue you a loan. Many investors will want both.

Remember that a decline does not mean your business or loan request is bad. Sometimes the problem belongs to the financial institution and that is why your loan is declined. Sometimes there are real credit risks. Every bank wants to make loans but not all loans are equal. Each bank or credit union has a portfolio of business loans. Over time these banks must diversify the loans they make to different industries, businesses and loan types (often regulated by the FDIC). If you need some help evaluating your loan request please give us a call. This is the niche that the Hoffman Consulting Group was formed to serve.

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