Why Banks Would Reject Your Loan Application?

Banks and private lenders are two financing options you can find in the US. But many companies have stopped using conventional bank lending. Why is that? Well, we’ll answer that question in this piece.

People don’t opt for banks in today’s financial era because banks can reject your loan application in the blink of an eye. Let's find out why banks would reject your loan application. 

‘Cancel’ typed using a typewriter

Low Credit Scores

Your business credit score is bound to be low if you’ve got unpaid bills or too many lines of credit. With a low credit score, banks won't think twice before rejecting your loan application. You’ve got two options if your firm wants to get funding with low credit scores; you can either try to improve your credit score or opt for private lenders who lend out money to investors with a low score.

Improving your credit score can take a lifetime. Why waste so much time when you’ve got a perfect alternative? We suggest you opt for private lenders to get an extensive asset-based loan deal.

Failing To Meet Loan Requirements

Banks will reject your loan application if you miss out on a single document from the long list of requirements. We understand that following the bank loan procedure can be hectic, but if you’re looking for an easier financing option, opt for private lenders.

Risky Investments

Many conventional banks reject construction or raw land loans because they feel the loan is too risky. Unlike private lenders, banks don’t want to take on the financial risk. If you want to finance innovative projects, it's better to stick with private hard money lenders.

A private hard money lender drafting a loan agreement
 

Remarkable Hard Money Loan Deals Available

Has your bank loan been rejected recently? Rather than applying again and going through the lengthy process, we recommend you connect with a private lender like Global Capital Partners Fund LLC to get an excellent hard money loan deal. They’ve got an experienced underwriting team that can quickly approve your loan application and helps you get the funding you need for your commercial project.

Get in touch with the team at Global Capital Partners Fund LLC to learn everything about mezzanine financing and hard money loans.

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