Do you know,
Why Banks Reject Loans &
What could be your
Business Loan Rejection Reasons?
You may be wondering “What’s life like, after your bank loan application is being repeatedly rejected by your bank, in multiple banks, despite your best efforts?
Having your loan application rejected by a bank can be very discouraging. What to do if bank rejected loan application? Do not get upset. This is not the end all of the world. Lot of times, business proposals gets turned down by banks & financial institutions. Business loan rejection reasons can be too many & has become very common and almost all businesses that have applied for various types of loans at various stages have passed through such situations. It doesn’t mean that you should give up your hunt for business finance.
Why Banks Reject Loans
Why Banks Reject Loan Applications?
Why Your Bank Loan Application is Being Repeatedly Rejected?
Business Loan Rejection Reasons
What to do if Bank Rejected Loan Application?
Worldwide, Financial Experts, Consultants, Chartered accountants cite only about 8-12 reasons, why financial institutions and why banks reject loans?
This information is simply not available anywhere. Nobody seem to have any idea & worst, nobody would discuss in detail & tell you, Why banks reject loans or Why your bank loan application is being repeatedly rejected multiple times in multiple banks or what could be business loan rejection reasons or what to do if bank rejected loan application or what could be reasons why banks reject loan application even for your Personal loan, Mortgage loan, Home Loan & even Education loans?
You should seriously contemplate, what are the various criteria’s that the banks & financial institutions look at? What are the various possible parameters that the lending institutions consider and what could be other reasons, why banks reject loans?
We at NBS Business Consulting have done extensive research and have compiled nearly 125 SOLID REASONS, why financial institutions & why banks reject loan applications. We discovered that these are the “Solid Mistakes” that business owners and Entrepreneurs make or simply follow “Wrong Practices & Procedures” in their businesses.
The Good news is – All these Solid Mistakes and Wrong Practices can be totally rectified and are completely avoidable. The worst part is – No Bank or financial institution in this world would disclose & discuss the exact business loan rejection reasons, why your loan proposal has been rejected? It is kept secret, confidential & not shared with the loan applicant. Most likely, even the bank manager will not have any idea about the reasons. (If you don’t believe us, try discussing with any bank manager, where your loan has been rejected).
Business Owners should understand the reasons, why Banks reject loans before applying. They should realize the “Serious Mistakes” that they are doing. They should rectify the wrong practices or procedures that they are following in their business and learn how to avoid those mistakes & pitfalls and circumvent them legally. Even if the entrepreneurs have “Bad Credit History, Bad Credit ratings and Bad Credit Score” there are many legal ways to circumvent the above issues.
Since the Covid pandemic has disrupted the normal classroom learning across the globe, the virtual world has come to the rescue. Now that everybody have access and are glued to their computers & smart phone screens and keeping in tune with the current trend, even we at NBS Business Consulting are now focusing on virtual platforms & Video tutorials. However our regular 2 days Business Seminars shall be resumed as soon as the situation comes to normal.
At NBS Business consulting, our vision is to help business owners & entrepreneurs in every way possible to raise funds for business. We have now introduced recorded online video tutorials & discuss Why banks reject loans, Why your bank loan application is being repeatedly rejected, what could be Business Loan rejection reasons, what to do if bank rejected loan application & finally Why Banks Reject Loan Applications.
Unfortunately, there are too many questions & very little answer
The worst part is, the banks & the lending institutions do not give the exact reason, why the loan has been rejected?
In fact, the lending institutions keep the exact reasons very secret. They simply do not share or discuss or disclose the exact reason. The lending institutions, in fact protect themselves by not disclosing the exact reason, why the loan has been rejected?
Some of the reasons, why banks & FI’s never disclose could be due to the following reasons:
• The business owner may dispute the declined reason & may even proceed against them legally.
• The business owner may come back to the bank and demand for the loan after resolving the issue by providing evidence to the same
• The business owner can even dispute the reason and can even contest in the court of law, that the declined reason was erroneous.
• It could be due to various other reasons that banks cannot explain or may not want to explain.
To avoid such embarrassing situations, banks & financial institutions simply do not give any reasons or give very vague reasons or even multiple reasons for turning down a loan application. This is just to safeguard themselves & be in a stronger position, when they are confronted. If an applicant resolves or dispute one declined reason, the lenders can simply cite other reasons for declining the loan. In case of any pressure from the customer, the banks may even reconsider the entire case & decide whether they want to approve the loan or not.
The borrowers must note one aspect here. The lending institutions be it any bank/ FIs are not obligated to give you the exact reasons, why their business loan has been rejected. For various reasons, the lending institutions will decline and will continue to do so. It could be due to so many reasons that banks may not want to entertain or simply cannot explain. The sad & the worst part is – All the reasons, why banks & FI’s reject the business loan proposals are completely AVOIDABLE. These are simply MISTAKES committed by the applicant, business entrepreneurs & the entrepreneurial firms.
Discuss 125 Solid reasons, why Financial Institutions & why Banks Reject Loans & Business loan proposals?
Why your bank loan application is being repeatedly rejected, despite your best efforts? Discuss 125 business loan rejection reasons & explain the “Solid Mistakes” committed by the entrepreneurs & the “Wrong Practices & Procedures” followed, resulting in business loan rejection.
Discuss what to do if bank rejected loan application & business loan rejection reasons and offer suggestions how to rectify the solid mistakes & wrong practices & procedures that are being followed in their business and how to avoid those mistakes, pitfalls & issues and circumvent them, all legally.
Offer Innovative ideas & suggestions so that your next Loan application & business proposal is fool proof & should go through smoothly & successfully
No Banks or Financial institutions would like to lose a good potential borrower. In fact, Banks & Financial institutions all over the world are desperately looking for good borrowers. There is great competition among various banks & financial institutions to acquire good borrowers & good customers. But the irony is……
• 97% of all Proposals submitted to Investment Bankers are rejected?
So, we should understand why Financial institutions & why banks reject Loans? We should know & be aware of what does it take to convince a potential lender to lend their money & win over them?
Blaming the Banks & Financial institutions for not lending money is not always a correct thing to do. There is a lot of self introspection one needs to do, on one’s own self, on one’s own business & on the practices & procedures being followed in their businesses.
Always remember one important fact – All the lenders in the world, however mighty or small they are, be it any Bank or Financial institutions or any other type of lending institution – They are all there to Lend & Lending is all they do. They can survive only if they lend. They hate to reject a good borrower and keep their money idling in their safe lockers. If they don’t lend, they will have to close their doors.
But that does not mean that Banks & Financial institutions would lend to every Tom, Dick & Harry who applies for a Loan be it a personal loan, home loan, Mortgage loan etc. It would be sheer waste of your precious “Time, Money & Effort” if you do not understand – Why banks reject loans, Why your bank loan application is being repeatedly rejected, what could be Business Loan rejection reasons, what to do if bank rejected loan application & finally Why Banks Reject Loan Applications.
Many business owners don’t realize that not all banks & financial institutions are alike.
Different banks have different philosophies and strategies about lending. Whenever people discuss with us, on the subject of raising funds & loans for their business, they all share their harrowing experiences that they had with various banks & financial institutions and discuss in great length & complain about the non co-operation of banks & financial institutions regarding this matter. They keep telling us that banks & financial institutions never co-operated with them regarding this matter & in fact they all harassed them. Let me clarify some basic stuff here. Every one of us must understand, one very basic fact, very clearly. Any lending institution, anywhere in the world, whether it is a Bank, Financial institutions & any other kind of Lender are in the business of lending money and earning interest out of that. Their business is mainly lending & lending is all they do.
Please understand, that they have to lend to others for their very basic survival. If they do not lend & earn interest out of that, they have to close their doors. They want people to come forward & borrow money from them. So they actually look out for various ways and come out with various schemes & plans and make it attractive for people to borrow money from them.
Just because they are in the business of lending, it does not mean that they will start lending to every Tom, Dick & Harry who approach them. They are extremely cautious & carefull about their money, since it is their hard earned money & they are quite responsible for that. Remember that even banks & other financial institutions also borrow money from various sources in the form of deposits on which they pay interest regularly. They take money from the general public in the form of deposits for which they are quite answerable and responsible.
In order to safeguard their money, the lending institutions are very selective & choosy before lending the money to anybody. No Bank or Financial institutions would like to get into Problems & Risk their Money.
Remember Banks & Financial institutions are also commercial organizations, just like yours. They are also highly profit oriented. Unless & until they lend more they cannot grow. Without growth, they cannot earn more profits. And without profits, they cannot sustain themselves for long time. They are all in the business to grow & earn more profits.
As a Business Entrepreneur, how many ways do you know to Raise Funds for your Business? Are you depending only on Banks for all your Financial needs? Have you ever wondered, what are the other options left for Business Entrepreneurs after their Banks have rejected their Proposal for a Business Loan?
Banks have found out more ways to disapprove your Loan than to approve it. Banks just do not entertain, if you do not have solid income proof. After the Bank, you only think about mortgaging your house or pledging family Jewellery. Scary, Isn’t it?
Fortunately! You have come to the right place now! We are in the business of advising, guiding and offering very innovative Ideas, Life changing suggestions and Game changing strategies on “How to Raise Funds for Your Business” which can be implemented – “Right Today & Now!”
We are in the business of advising, guiding and offering Very Innovative Ideas, Life changing suggestions and Game changing strategies on various business issues like “How to Raise Funds for Business” which can be implemented – “Right Today & Now!”
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