By Evan Vitale
You tried, but the bank has declined your loan request.
Rejection is never fun. However, if you have a good chain of communication open with your bank and your bank’s business manager, you probably know why your load request was denied. It can be fixed and you can try to re-apply at a later time.
However, for now, you’re in a time crunch. Perhaps, the bank loan was going to help you secure additional inventory; a piece of equipment; an expansion, etc.
So, now what do you do?
First, don’t give up. Second, start looking for other institutions that will help you with your lending needs.
Start by contacting your connections within your business network. Your business connections probably know someone who can help you. Who knows? Perhaps, one of your business connections has secured a loan during their difficult times as well.
A business friend of mine was attending a business networking support group in which a group of 7-10 businesses formed a roundtable to help each other solve business problems. One business owner was having trouble securing a business loan that would allow him to purchase a much-needed piece of equipment so he could complete and fill a large manufacturing order. His plan was to pay off the loan in six months. Instead of approaching bank after bank, another business owner in the group stepped up to the plate and offer to make him a personal loan (on the spot)!
Next, it’s time to use your Internet friend – Google – to do a little research and make some contacts. At time point of not sounding desperate, you can easily explain your financial situation and what you need the loan for, etc. Be humble and professional.
You might also look for other smaller, short-term business and personal loan opportunities – small loans from family and friends; credit cards; title loans on automobiles you own, etc.
If you’re looking to buy equipment or inventory, seek financing options from the vendor. Chance are they offer financing to their long-term customers. The worst thing you can do is not ask.
The answer is always “no” until you ask.
Don’t give up on your loan and financial requests.