When you need money for your business or brand, time can be of the essence. It all comes down to the loan application; however, there are often some common errors that can cause immediate denial by your lender. These mistakes could compromise the fiscal health of your business. Improve your chances of securing the loan that your company needs to prosper and avoid these common application mistakes:
Make sure that any documentation or records you use to support a loan application are current. Outdated records are a common reason to have a loan application immediately rejected and denied.
How Money is Spent
Be prepared to explain and clarify how the money will be used and spent. It is the lender’s right to inquire- plus it helps to tease out the best type of loan to suit your intended needs.
No Credit Rating
Do you know your credit rating? Find out your company’s credit score- and your one, too- so that you don’t get any surprises when applying for a loan. Your credit report should outline any debts or issues that need to be resolved to improve your credit rating and make you a good candidate in the eyes of the lender. Stay abreast of changes made to your credit history.
If your application or supporting documentation is not submitted before the due date, your request for funds will likely be denied. It is that simple. Follow through promptly and demonstrate that you care about this financing.
The Wrong Loan
Make sure that you are applying for the right type of loan to suit your needs and that the terms fit. If you apply for a loan that seems ill-suited to what you need the money for, the lender may automatically reject your application, though they may suggest starting the process all over again for a different type of loan.
If your business needs money, talk to the team at Means Commercial Capital to learn more about alternative financing sources available to you.