Bank Loan Approval: Three Primary Reasons Your Banker May Say No!
So it’s definitely no running, carefully hidden secret, startup ventures, are not the only ones, endlessly seeking, the elusive bank loan approval green light, correct?
Small business owners, entrepreneurs, Mom-preneurs and extremely hard working and dedicated service providers, of all shapes and sizes, occasionally seek bank loan approval as well, do they not?
And if they have to pay upfront fees, just to apply, certainly, these banks and other potential lending institutions, (both on and offline), definitely get their fair share, of the multi billion dollar, loan application fee, correct? 😀
Clearly, lending institutions, have to loan out their depositors money, at a significant enough rate, in order to stay in business, right?
But sadly, more time than they’d like to, your local banker, is forced, by circumstances beyond their control, to deny your loan request.
This particular blog post, will attempt t reveal, three all too common reasons for doing so….
So Who Else Wants To Discover The Three Primary Reasons Why Your Bank Loan Approval Request Will Probably Be Denied?
First of all, would it, (or does it!) flat out shock you to discover, on average, a staggering 45% of all of business loan request applicants, are denied at least twice.
Eye opener, correct? And according to some very reliable expert sources, about 23% of the applicants, never discover the primary reason(s) why their bank loan was denied.
Now before jumping head long into the primary meat of the subject. Rest assured, there are any number of reasons why, (you and I), and or your/our major competitors, may have our loan request denied.
This particular mini blog post series, (and the video which accompanies this blog post), will focus on three all too common reasons.
Three Potential Ways You Might Be Secretly Sabotaging Your Bank Loan Approval Process!
1.) Potential reason # one: You can’t fully explain,all of the outward going cash flow allocations, which appear on your financial statement.
Which basically lead your local banker, and or potential lending institution to conclude, you don’t currently have your financial house in order.
And probably will not, anytime soon. So it would definitely be a major mistake, (at this particular time!), to loan their deposit hard earned money to you!
2.) Potential reason # two: Next, even though you’re emphatic about your brand new and or current entrepreneurial endeavor.
And you’re totally convinced, both your business plan and current economic conditions are ideal. You’re not prepared to personally guarantee any part of your loan, by pledging any of your major assets.
Like your house, which has a size able amount of equity in it. 😀
And this unfortunately translates in your potential lenders eyes, as a potential borrower, who really doesn’t believe enough in their venture, to pledge their own personal assets.
There Are Any Number Of Proven Ways To Tip The Bank Loan Approval Process In Your Favor!
3.) Potential reason # three: You try and convince you potential lender, because your business, product and or service, is so unique and in such high demand.
You really cannot accurately forecast and or project, just how much your monthly cash flow will be.
And of course, this rather non descriptive revelation, ultimately leads your potential lender to conclude, you really have no idea (whatsoever!), how or when, you’ll truly be able to repay your loan request.
For sure there are plenty of other, potentially viable reason(s) for your bank loan approval request, ultimately being denied.
However, these first three, are more than enough, to help you get you closer and or back on track. Don’t you agree?
P.S.Now as is customary during this part of our show.
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that you can apply to your business, product or service in the next 30 days or less!
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Adding on to this I think it also depends on your personality and skills to engage the person in command. I would say 50% of the times, banks just refuse you because your behavior was not up to the mark. Strange but it happens 🙂
I’m sure there’s some merit in what you say Ashan!
However, unless those bankers and or credit unions,
consistently loan their depositors money out,at
high enough rates, to cover their cost and other ongoing
expenses, they simply won’t survive.
So they are eagerly looking for qualified applicants,
to loan their depositors capital out to.
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