Daily Tip: If your business loan is rejected, don’t re-apply to the same lender

CreditEnable_Business Loan

If you applied within the last 3 months for a small business loan and you were rejected, wait before you re-apply and seek help.

When lenders are making a lending decision, they assess your application based on many different factors, including:

  1. your credit history
  2. your business plan 
  3. your sector
  4. your financials and cash flows
  5. your repayment history.

Discover some common reasons why lenders reject small business loan applications and how to correct them.

Many lenders have a cooling-off period, so if you’ve applied within the last 3 months and were rejected, they won’t allow you to re-apply until at least 3 months have gone by. Other lenders will want to see that you have been able to significantly improve your cash flows or repayment history over a period of time. So, they may want to wait to see a 6-month positive track record post a rejection. The worst thing you can do is to apply to too many lenders in a short period of time and get rejected because this will degrade your credit score and reduce your chances of getting a loan in the future.

You are not alone. CreditEnable can help you get small business funding from one of our 25+ lender partners. We’ll check your loan eligibility by doing a soft pull of your Experian score and analysing your business financial performance. If you don’t meet our lender eligibility right now, we’ll tell you why and how you can correct it so you can get the loan you need in the future. If you are eligible right now, we will help you get the right loan for your business fast. 

Check your eligibility now.

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