It can be disheartening when you have well laid out plans for your business, only to find you’ve been refused a bank loan. However, there are other options out there, and you can find ways of achieving your business goals without going through the banks.
Here’s what to do if you can’t get a bank loan to fund your business.
Look at All Your Finance Options
There are lots of different ways to secure business financing, and just because you didn’t get a bank loan doesn’t mean you won’t find alternative ways of raising money.
Companies like biz2credit.com specialize in offering credit to small businesses, so shop around and find the deal that works for you. Don’t let one loan rejection get you down, because you’ve got lots of options out there.
Work on Your Credit Score
This can apply to both your business credit score and your personal credit score. If you’re trying to secure a bank loan for a start-up, then the banks will often look at your personal credit history, so it’s important to make sure you’re taking positive steps with your personal finances.
Improving your credit score is often about following a set of rules, and while it takes time, it’s something everyone can do.
If you work hard to improve your credit, then you may find you get a different answer the next time you ask the bank for a loan.
Address Cashflow Problems
The banks’ big worry when they give you a loan is that you’re not going to be able to pay it back. If your business suffers from cashflow problems, then this is just going to add to their worries.
Many businesses can be asset rich, and yet struggle to get hold of cash – their money is tied up in things like equipment and stock. It is possible to look at refinancing against your assets though to unlock some extra cash.
Streamline Without a Loan
Your life might be easier with the loan, but there’s no reason you can’t move your business forward without it. There are lots of ways to streamline your business while improving efficiency and output, you’ve just got to find the strategies that work for your business.
If you can find ways to save money while continuing to maintain a high-level of performance, then you solve two problems in one go. You don’t have to worry about interest payments, and you will put your business in a better position to apply for credit further down the line.
Just because you’ve been refused a bank loan doesn’t mean you can’t achieve your goals. There are plenty of different ways to make your business work, so you’ve got to keep planning and strategizing.
Whatever problem it is you’re trying to solve with your business loan, there are other ways around it, and you will be able to find them with good business planning. Stay positive and keep looking for the best options for your business.