Bank said “no” → treat it as a to-do list, not a stop sign.
Follow the sequence below; each step fixes a common denial trigger and opens a cheaper door.
1. Get the real reason (in writing)
- Ask the loan officer for the adverse-action notice and a 5-min debrief.
- Typical killers: personal score < 680, DSCR < 1.25, insufficient collateral, short time-in-business, sloppy books.
2. Patch the biggest hole fast
| If they said … | Do this in the next 30 days |
|---|---|
| Low credit | Pay down personal revolving to < 30 %; add 2 new vendor net-30 accounts to start a PAYDEX file. |
| Weak cash-flow | Run a 13-week cash forecast; trim 5 % opex or raise prices 3 %—shows surplus on paper. |
| No collateral | Move the next equipment purchase onto a lease or equipment finance agreement; the asset itself becomes the security. |
| < 2 yrs history | Park the application—open a business savings with 3-4 months of operating cash; banks approve lines faster when you already keep deposits there. |
3. Tap speed money while you get bankable
- Revenue-based line (Fundbox, BlueVine) – 24 h approval, 6-12 mo term, APR 18-40 %; use ≤ 30 % limit and autopay weekly—builds positive bank-flow history.
- Invoice factoring – advance 80 % of open A/R if you’re B2B; factor fee 1-3 % per 30 days, no PG in many cases.
- Micro-loan / SBA Community Advantage – up to $350 k, softer criteria, 7-year amortization; apply via local CDFI or SBDC.
4. Re-enter bank lane in 90-120 days
- Show three consecutive months of rising daily balances and zero NSF.
- Ask the same banker for a SMALL request first—$25 k seasonal line secured by a CD or savings; approval odds > 80 %.
- Once that line seasons 6 months, graduate to an unsecured revolving line at prime + 2-3 %—the cheapest money you’ll ever get.
5. Keep the paper trail hot
- Monthly internal P&L + aging (A/R & A/P) ready to e-mail.
- Update business plan with 24-month projections and use-of-funds paragraph—banks love seeing the word “repay” in the executive summary.
Bottom line: a “no” is usually a not-yet. Fix the stated weakness, document the fix, start small with alternative capital, and re-apply once the trend, not just the snapshot, looks stronger.
The Real Bottom line is to get your free Business Credit Success Scan™ now at BusinessMoney.broker and instantly see what lenders see when they underwrite your business loan. Use our platform to aquire instant approval for optimal business funding now, invest in your business to become bankable in approximately 120 days. Then, you can refinance into premium rates and terms, more money with low market rates and longer terms via securing premium bankable business financing, assuring a bright future for your business endeavor along with living the successful wealth building business owner lifestyle.
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