Securing financing for a small business can be a difficult task. Banks reject roughly 80 percent of small business loan applications, leaving applicants searching for other options. While the strict standards put in place by traditional banks and credit unions regarding business owners’ creditworthiness and ability to repay loans are intended to minimize risk, they also complicate the lending process for businesses.
Although small business loan rejection rates are high, don’t let that discourage you. It’s beneficial to learn about the common reasons for rejection in order to improve your application and your chances for approval. Explore the Top 5 Reasons Lenders Reject Small Business Loan Applications to gain some insight into how you can improve your chances of getting cleared for funding.
The team at Loan Mantra knows small business funding inside and out and will use their skilled knowledge to assist you in significantly improving your chances. Our team is experienced in working one-on-one with diverse groups of small business owners and knows how to best position their loan and grant applications. Contact us to let our experts guide you through the whole process.