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Business Funding: Bouncing Back From Rejection

Whether you are looking to grow your business or save it from a difficult patch, at one point or another, you may find yourself in need of financial aid. As the economy is beginning to improve, banks are now increasing their lending however, for the small business owner rejection is still not unusual.

It is never easy being rejected for financial aid however with years of experience in small business finance, the team at Calculated Accountants have helped many business owners bounce back; because a no does not necessarily mean defeat. If you have previously been rejected, don’t take it to heart but instead use it as an experience to grow and learn; whatever the reason, find out why you were rejected and how you can improve on this.

If your application for business finance is declined, it does not necessarily mean that your only other option is to give up. Countless business owners are rejected daily however many will often try again and achieve success.

Flaws in the Plan?

There are numerous reasons why your financial application could have been rejected however nine times out of ten it may be as a result of flaws in your presentation and overall business model. Take a look at your business plan and the information you are presenting to the bank; is your business plan solid? Are you able to prove that your business will be a success and most importantly, that it can make money and pay back the loan?

Adhering to the Criteria?

Every bank is different however all banks will have specific lending criteria that must be met and in the aftermath of a global recession, it is guaranteed that the criteria will be strict and the slightest misgivings will not be allowed.

Although more and more banks are now being encouraged to lend, they will not lend to just anyone. As a business owner you must be able to determine whether or not your business will make money, how it will make this money and what, if any security can be provided to the bank if all else fails? For the majority of lenders if there is no security, there will be no loan.

Take it on the Chin...

Whatever size your loan and however urgent the requirements; rejection is never anything unusual particularly for the small business owner. Take the time to learn from each no and use it to better yourself because a no is never a reason to admit defeat, if anything it can only help you get better. 

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