You have built a thriving business with a great product and plenty of customers. In addition, you take advantage of technology and make smart sacrifices. So why would you be declined for a business line of credit from a bank?
To get your business where it is today, it’s likely that you have never declined to help a customer or your community. That’s what makes being declined for a business line of credit seem to be even more unfair. Thankfully, you do have options.
What Factors Determine If You Should Be Declined for a Business Line of Credit?
Access to quick business capital is the lifeline of any company. Without it, you are vulnerable to missing payroll, an inability to purchase supplies and simply running out of cash. Unfortunately, banks don’t make it easy for the small business owner.
Banks make decisions about approvals that most business owners rarely understand. It could be your personal credit, history of bounces, or negative business cash flow. What you may not know is that banks also look at pending law suits, UCC filings, and lack of collateral, age of your business, the industry you are in and the age of your business. In fact, there are a whole slew of reasons why you could be declined for a business line of credit.
The sad truth is that traditional banks reject more than 50 percent of the small business loan applications they receive. This means that your strategies for growth and plans for expansion might hit a brick wall, regardless of your preparedness and enthusiasm.
Where Can You Go to Avoid Being Declined for a Business Line of Credit?
Getting business cash now means finding a lender willing to look at your whole business when making a funding decision. For many small businesses with assets less than $5 million, the answer can be found in alternative lenders.
Your best option is a business cash advance company, like Financing Solutions (www.financingsolutionsnow.com). They can give you a business line of credit, cash advance or debt consolidation assistance without hassle.
Financing Solutions doesn’t require tons of collateral or personal guarantees. Most importantly, you will receive a decision in a matter of minutes. As a result, you can get same day business financing for daily business operations and to take advantage of key opportunities.
Reasons Your Business May Have Declined and How to get it back on Track
Even smart business owners can miss signs of decline in their company. Running a business has never been easy, but these tips could help you recognize problems and improve your bottom line.
If your business cannot be easily found on the Internet, this represents a serious problem and might be a cause of steady decline. Studies show that customers conduct more than 60 percent of the sales cycle before ever talking to one of your salespeople or calling your company. Most of their research is done online. You must do your own homework to discover your keywords and develop content to move to the top of the search engine.
Your product could also be on its way to an outdated junk pile. For example, you could still be making book binding machines in an e-reader world. It’s vital that you stay ahead of trends, build relationships with customers to learn what they need and to be innovative.
More frequently, businesses decline due to a lack of cash. You can solve this problem with instant business funding from Financing Solutions.