5 Reasons Bussiness Are Rejected For Short Term Business Loans

1. 5 Top Reasons Behind The Small Business Loans Rejection 1

2. ➢It can be a challenge for small business owners when discussing with the banks for acquiring a business finance or short term business loans . ➢As per a recent study, around 50% to 55% of small nationwide successfully probable finance and loan packages of the sum requested over the past one year. business owners obtained 2

3. Top 5 Reasons Behind the Rejection of Small Business loans are as follows :  No Preparation  Looking for Small Loans  Poor Cash Flow  Bad Credit/ No Credit  Lack of Collateral 3

4. No Preparation  Some business owners are rejected for a loan and the simplest example is that they have failed to follow the set procedure. Some business owners aren’t aware procedure and think that they can just walk into a bank, fill out a form and walk out with a bag full of cash. of the application  Unluckily the procedure is somewhat more intricate and there is a long list of comprehensive criteria that small business owners need to meet to get a Fast Cash loan request approved. Continue..... 4

5. Continue.....No Preparation  Prior to applying for a short term business loan, businesses will require submitting the latest up-to-date written business plan, a period of bank statements, comprehensive statements, personal and business credit reports, tax returns etc. financial  They must also have copies of applicable legal documents that include contracts, leases and any applicable licenses and permits etc. 5

6. Looking For Small Loans  put in their applications for medium sized loans totalling less than $100,000; regrettably, in this respect, banks want to finance bigger loans because it’s more profitable for them. It is documented fact that many small businesses  To process a $60,000 loan and a $1 million loan, it costs the bank around the same amount; however, the $1 million loan will make a greater return and so it is more profitable for the bank.  Thus, small business owners should be conscious that a loan request should be as sizeable as possible, obviously within the sphere of possibility in terms of meeting a repayment plan on a timely and regular basis. 6

7. Poor Cash Flow  Suppose your business has a very tight margin then it is recommended to work toward reducing expenses or finding ways to make revenue and strengthen a credit report prior to applying for a small business loan.  be a challenge –the right timing of discussing with a lending centre or traditional bank will be influential in negotiating a positive outcome. For similar businesses, cash flow will always 7

8. Bad Credit/ No Credit  A credit score is a measure of overall credit worth of an individual or a business. Generally it’s very much hard to get bad credit loans for businesses.  Before coming to lending decisions and/or setting interest predictably will inspect both personal and business credit scores. payments or a period of bankruptcy etc. will result in a low credit score. rates, banks Failed or late Continue..... 8

9. Continue.....Bad Credit/ No Credit  In some cases, a small business may simply be too new adequate credit history to qualify for a business loan. to demonstrate  To improve your credit scores, it is recommended to spend prudently under the credit limit, make regular & timely payments as well accounts in a good financial state. as uphold existing 9

10. Lack of Collateral  Conventional banks usually need a type of collateral, possibly a piece of property, which can act as a guarantee for a loan in the event of failed or slow repayment. The bank may be reluctant or hesitant to commit to a finance package or loan wherein small businesses don’t have significant real estate property or equipment to provide as a type of collateral.  Homes and cars are the regularly accepted forms of collateral by the traditional banks. Predictably the amount a bank will loan relies upon the total worth of the asset(s). If the small business owner doesn’t have enough asset(s) which the bank regards to be of adequate high value, the probabilities of obtaining a small business loan will not materialise. 10

11. Pawnbrokers Can Assist Small Businesses Even If You Have Bad Credit Small businesses can still get same day business loans from reputed pawnbrokers or pawn shops! Based in Sydney, Cash Fast Loans is a trusted car pawnbroker and moneylender who provide short-term business loans without any credit checks. Get detailed idea about The Significance of Instant Short-Term Cash Loans. 11

12. Contact Us Name: Cash Fast Loans - Car Pawnbrokers & Moneylenders 10 North Rocks Rd, North Parramatta, NSW 2151 Address : 1300 227 432 Phone No : www.cashfast.com.au/ Website : Social Sites:www.facebook.com/cashfastloans plus.google.com/116490910675068833835/posts www.youtube.com/watch?v=6kKqzUjabkM 12