Top reasons small business get rejected for loans in Manchester
Did you know that as many as 40% of small business loan applications get rejected? It only cements the fact that if your business is new or the market conditions are poor that getting a loan can be quite a challenge. There is good news though. If you understand the most common causes for these rejections, you can take steps to avoid them and give yourself the best chance or approval. Here are a few of the most common reasons why small businesses get rejected for loans in Manchester.
Your business hasn’t been operating for a long period of time
It’s important that lenders have proof that you’ve been successful in business. It reassures them that you’re able to repay the loan and that you may stay with them for a long time. Now, if this is your first business venture then don’t worry. Loan Bird can help you find alternative funding opportunities. Alternatively, you could try a different approach in the form of Kickstarts or an investment from Angel or Venture Capitalist investors.
Your industry has a high failure rate
Banks and lenders may have strict rules about the kind of business they’re willing to lend money to. The higher they deem your industry’s failure rate, the less chance of them lending you money. To prevent this, it’s important for you to get in front of someone from the bank or lender. That way you can prove that you know your industry inside and out, and if you provide a clear business plan, they may make you an exception to the rule.
You have to much debt
Lenders want to see that you can repay the money they lend you. This means that if you already have a lot of debt, you may struggle to get the financial investment you need. To prevent this, you could strike a deal with your current lenders, get a consolidation loan, or in dire circumstances, consider bankruptcy.
So, if you’re looking to open a business in Manchester, then why not work with Loan Bird to get the financial backing you need? We can consolidate your debts, offer you payday loans, and even off bad credit loans too. Just use our online form and you’ll be well on your way.