Most small business owners understand the need for a small business loan. However, not all small businesses are able to get approved for one. In most cases, this is because they don’t meet the requirements or they have their own collateral that isn’t enough to cover the loan amount needed.There are so many companies offering loans to start a small business. It is essential to always check a companies credibility and terms before taking any small business loans Mississauga.
In this post, we will discuss 4 steps you can take if you aren’t approved for an SBA loan and what your options are when faced with these challenges
Talk To Your Banker And Come Up With A Plan.
Your banker may be able to work on increasing their collateral or getting you help from another small business that can loan them the money they need.
Contact the SBA and see if they are able to loan you small business loans. If not, ask them how else you can get the funds that your small business needs. Maybe there is a way for them to work with other businesses or someone in their network who may be able to help out.
Get In Touch With Local Businesses Who Have Had Similar Issues
Find out what advice they would give someone else going through this predicament – you might find someone who can help you get approved for a small business loan.
Contact small business organizations in your area to see if they can put you or someone else who is willing to loan money on a list of small businesses that are seeking funding. This might lead them to come across another small business owner who would be able to help out with the funds needed for your small company’s needs.
Also, look at other small business loans in your area to see if there are any small companies seeking funding that you could work with. You may be able to partner up and go into a credit agreement together for the loan, or even combine small businesses to help them get approved.
Don’t Be Discouraged
It’s also important to remember that plenty of people have been in your shoes and succeeded despite not getting that SBA-backed loan. Take a look at these statistics and be prepared to move on: Seven out of ten small businesses are not financed by SBA loans. More than half of all new businesses are financed privately. Nearly half of all small businesses are self-financed by the owner, either through personal savings or other personal resources.
Don’t give up! There are plenty of small businesses that do succeed in getting loans and they often offer their advice on how to go about this process as well. Consider using your retirement funds or other savings account, while simultaneously conducting research on small business loans.
If that option fails, there are still options available to you such as friends or family members who may be able to lend the money needed by taking out a personal small business loan in their name.
Get a Bank Loan.
Don’t expect an SBA loan to be your only option when it comes to getting funding for your business; private bank loans can fill in many gaps that the SBA can’t provide. Ask your banker about business financing, and see if the SBA loan is among the suggestions. Many banks have predefined programs for borrowers with collateral or other trusted assets, which means that you could be approved more easily than with an SBA loan. Compare bank loans to SBA loans here!
The small business loan process can be challenging at times and it’s possible that you might not get approved for an SBA or other small business loans. However, there are many options available to small businesses that run into these challenges. In this post, we discussed four key steps small business owners should take if they aren’t able to get approved for small business loans and what their other options are.
You can start by talking to your small company’s banker, contacting the SBA for small business loans, or any other small businesses in your area who may be able to help out with this issue if they have had similar experiences. If you need more assistance contact small business organizations near you that might offer you the help you need.