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"The Fear of Success is just as debilitating as the Fear of Failure. Do not let either one hold you back." ~Karlene Sinclair-Robinson

Thursday, November 11, 2010

Know Why Banks Turn You Down

You have applied for a loan from the bank for your small business. They turned you down. You go to another bank, they do the same. You assess your business plan and the additional information you provided but cannot figure out where you are coming up short.

After looking for a loan for your small business for weeks, you finally face the brick wall of "NOs". You figure, this is it, you cannot qualify for a loan. Who's out there that is going to lend you the money you need?

Did you consider asking the banks why they turned you down in the first place? If you did not, it is a vital question to ask. This is valid because it gives you the opportunity to learn how banks work. Never apply for a loan, whether for personal use or for business, and not ask the question as to why you were denied the loan. If you know why, then you can figure out what you need to do next time to get approved.

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