Having your SBA loan declined can quickly turn your small business dreams into frustrating nightmares, but that doesn’t have to be the case.
In most instances, a declined SBA loan is simply due to some missing requirements that you may have overlooked. In many cases, strengthening your application and reapplying will produce a better outcome for you.
We strongly suggest you work with a lender who has significant SBA experience or find an SBA consultant such as Business Finance Depot to help guide you through the process.
Understand Your Shortcomings
Did you know that anyone who has their SBA loan denied is entitled to a written letter explaining exactly why they weren’t approved?
Loans are typically rejected because of a lack of credit, collateral, capital, or capacity to repay the debt. In most cases, the denial letter won’t spell out exactly which issue caused your loan to be denied, but working with a loan specialist can help you better understand what you might be lacking.
Strengthen Your Application & Reapply
If your SBA loan is denied because of issues with your personal credit or your business financials, you can often improve your odds of success by taking a few months to strengthen those areas and then reapply for the loan.
There is a 90-day window that you must wait between applications, but this is usually the minimum amount of time you will need to make significant changes anyway.
Consider Alternative Funding Sources
SBA loans come with stringent requirements, and many people who paint outside those lines need alternative funding options. That’s where Unsecured Funding Source steps in.
And if time is more of an issue for your business, or you do not succeed with SBA funding, you might want to consider alternative funding sources.
While it is somewhat common for people to mortgage their homes to take out business loans, there are plenty of unsecured business loan options that could also work without forcing you to risk your home or other personal or business assets.
UFS has over 15 years of experience guiding borrowers through the lending process. Contact UFS today to discover SBA loan alternatives that can help get your business the funding it needs in as little as two to five business days!