Monday, 9 December 2019

5 reasons why your business loan can be rejected: What you can do for it





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All banks see if you are able to repay the loan. Having a low credit score and no collateral is not considered reliable.

Solution:
Now you already have many more options. Try in those banks where there are no such conditions.

Low Cash flow Statmenet

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If you are not making a steady profit then it will mean that you are not running your Business Loan properly and because of this you will not get a loan.

Solution:
Use the accounting software that gives you business reports, monitor your cash flow with the help of these reports and take correct decisions.

Softaware Transcation

78% of merchants keep their accounts on paper which is lost over time. Sadly, all banks demand a systematic financial statement of the business.

Solution:
Use accounting software to digitally manage your account. Due to this, any information related to the business can be seen immediately.

When you have no previous performance, it becomes more difficult to get a loan. Make yourself reliable before applying loan.

Solution:
If you are going to Business Startup Loan for the first time, find other sources such as family, relatives, friends, credit cards and small business loans from the government.
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The bank should know where you are going to invest your money. If you do not have the right objective, then there is a small possibility that you will be given a loan.

Solution:
Why do you need a loan Do you want to buy the necessary equipment, or buy inventory, or repair your shop? Give a concrete purpose for taking a loan.


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