It’s no secret that the pandemic has had grave repercussions for businesses globally. In these circumstances, loans have become the lifeline for companies who’re looking to get back on track or for people who want to start their firm due to the recent rise in unemployment. If you’re either of the two, you’ll likely go to reach out to a bank for a loan.
But always remember, all that glitters is not gold. Banks are known for their shiny buildings and their office’s calm vibe but seldom help out those in need. Continue reading to find out the three reasons why a bank would reject your loan application.
Low Credit Score
The credit score can make or break your loan application. Credit scores help the banks know which companies to trust for commercial loans. If your firm has a low credit score, there’s a high chance your loan will be rejected.
Improving your credit score can take a lot of time, and if you require quick financing, it’s better to look for alternatives like hard money loans from private lenders.
If your company is in immense debt, banks are likely to reject your loan application. Before applying for a bank loan application, you must clear out previous debts.
Early Days For Your Business
Firms in their infancy stages need the capital to expand. However, it’s common for banks to reject firms in their early stages due to a lack of credibility and financial data. Moreover, new firms will also have an insufficient cash flow due to unnecessary expenses and improper invoicing. It takes time for firms to settle and make their financial departments efficient. Until your finances are top-notch, it’s better not to think of applying for a bank loan to save time.
Get Hard Money Loans In Atlanta Today
Are you tired of spending weeks preparing for the bank loan application only for it to be rejected in the blink of an eye? It’s time to switch to hard money loans.
At Commercial Private Equity, we strive to provide you with quick financing options with our specialized hard money loans. We don’t use the conventional methods banks use to determine the outcome of a loan application. We use your commercial property as collateral to deliver excellent hard money loan deals. We’ve developed a three-level loan program to ensure you get the most out of the loan deal. We are known for offering different types of hard money loans, including commercial hard money, bridge loans, construction loans, raw land loans, and workout loans.
Contact us today for more information.