What to do when the business loan is refused
by Finway FSC Empowering People FinanciallyCapital and funding are the indispensable attributes of any
business. Be it small or a large business firm, funding is a prerequisite.
After you have exhausted the savings and other sources of funding, you resort
to taking either a Loan Against
Property or a business loan. Taking a Business Loan in Delhi is not different than taking one in another
city. So if you are from Delhi, you must take the loan from the same city and
not get involved with the rate of interest offered in a small city. This may
allure you, but it will not be easy for your as documentation needs are large
and must be fulfilled so you get the loan. However, if you are rejected a
loan in Delhi, this is what you must do:
1. Analyze the reason
for denial: Sometimes a
pre-approved loan is also rejected giving a good blow to your business. In this
case, do not let this go. Find out the reason behind the rejection which may be
due to various factors ranging from the business location to the operational
strategy of the business or even an idea that was not supported by the lender.
Upon scrutiny and seeking help from the bank employees, when you know the
reason, it is best that you work on that factor and apply again.
2. Evaluate the
financial prominence of the business: Sometimes we have to
think from the lender's point of view and this calls for revisiting the
financial stature of the business. If there is collateral involved evaluate the
value of that too as a Loan Against Property also sometimes is not
enough for a large sum of money. Other reasons could be debt that the company
is into and wishes to pay off that through the loan. However, the purpose of
the loan is not to pay off Debt but to expand the business. Try to find the
grass-root issue in finances and move ahead with an improvised proposal for the
loan.
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Created on Oct 12th 2019 01:53. Viewed 465 times.