Application Declined - Steps to Take Moving Forward
Updated: Feb 18
So you got declined.. There are a lot of reasons why anyone would get declined when seeking financing. When a traditional bank declines you, they usually won’t tell you why. Leaving you with no direction or insight as to what to do next. Whatever reason you got declined for you’ll always have the chance to fix the issue then come back and get approved after.
If credit is your issue you can get the equipment you need as long as you’re ready to put a substantial amount of money down in order to add structure to poor credit in order to get approved. If you’re unable to afford to put the amount required down, definitely start to repair your credit as soon as possible.
This can be as simple as not going to multiple establishments asking for funding due to the fact that they pull your credit with every application. Prioritize making payments not only on time, but also paying more than your minimum amount to raise your credit as much as possible.
Don’t put yourself into any more debt when you’re trying to fix your credit. Credit scores are determined by a debt-income ratio which consists of how much debt you’re in versus how much income you receive.
If you got declined for not having enough in the bank, you just need to keep a consistent amount in your account to meet the requirements given to you by your finance manager. Lenders will often state the reason for decline and including your finance manager’s experience, they can give you a ballpark of how much you need to make. All you have to do is keep that amount at a steady pace and keep your accounts in good standing for at least 3 months then you can come back and apply.
Find a reliable finance manager who has experience under their belt. If you’re working with a proper and sincere person, they will point you in the right direction. It's very rare to find someone who's genuinely looking out for your company's best interest. This way you'll get the proper advice you need moving forward to secure an approval the next time you apply for funding.