A Bank Rejected My Business Loan. Now What?

There are sure to be bumps in the road when pursuing the dream of starting your own business. Any entrepreneur will tell you, “Nothing ever goes perfectly to plan every time.” These bumps will certainly include situations with money and funding. Often times, when business owners apply for funding through a traditional bank they are outright rejected or offered too small of a loan amount.

If this is has happened to you, you’re probably asking,
“What do I do now that a bank has rejected my loan or not given me near enough to fund my business?”
When traditional business funding options are not meeting your needs, don’t worry. Alternative finance options can be your business’s saving grace.

A Business Express Loan is a great option for existing businesses who have revenue and are looking for a loan amount under $150,000. Business Express Loans can include both SBA and non-SBA loans, and may fund in as little as 2 weeks.

Retirement funding is a way to invest in your own future and your business at the same time. If you have money in a self-funded IRA or previous employer’s 401k, you can invest it into a RollOver as Business Startup plan (ROBS) without incurring distribution taxes or penalties. Purchase a franchise or fund a new business with tax-free capital and no loans, banks, or credit involved.

Do you need funds to take advantage of an immediate opportunity or cover an immediate expense? Revenue Based Loans are an alternative financing option where repayment of the loan is tied to profitability, and is particularly well suited for industries with seasonal fluctuations in sales in addition to higher profit margins.

Another alternative finance option for your business is acquire true business credit cards. Unlike a personal credit card with your business name on it, a true business credit card will not report on your personal credit profile except in the case of default. Business credit allows you to keep your personal and business finances separate, and will not affect your personal ability to purchase a home or new car. The best benefit of a business credit card is that, unlike a traditional loan, you only pay interest when you actually use the money. With great introductory offers like 0% APR for the first 12 months, a business card is a fantastic option for start ups still in the planning stage and brand new businesses.

Alternative funding could be the best solution for you. There are even more alternative options available for your unique situation and business finance needs. Contact Finance Store to discover all of the funding options available to you. Our aim is to get your business the best possible funding.