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What To Do When Your Bank Says No

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Being rejected for a business loan from the bank can be discouraging at best, and at worst it can put your company in jeopardy. There are many possible reasons why businesses of all sizes do not get approved irrespective of good credit history; its important to keep the below tips in mind should you choose to reapply. If youre a start up operation however, a commercial bank will more often than not view you as a risk or liability notwithstanding. Thankfully, there are alternative options available that can help you regulate your cash flow, finance your endeavours, and grow your enterprise.

If your business lacks an adequate amount of physical assets that the bank can take as collateral, your loan may not come through.Banks want the reassurancethat if you cannot pay back the money you borrow, there will be an alternate way of securing it. Believe it or not, businesses seeking small loans may also not acquire them owing to the fact that the process for approving smaller and larger asks is the same, and banks want to capitalize on their time. As well, if you have a history of weak cash flow, it is difficult to prove your stability and reliability for any loan. What the bank unfortunately doesnt take into account is that a business finding itself in this predicament is often at the mercy of third-party customers who do not pay their invoices on time.

An industry where this burden is prevalent is trucking and couriering, where high-profile customers can take anywhere from 30-90 days to turn funds around. With invoice financing and invoice factoring however, those who find themselves in a precarious financial position can avoid the added hassle of dealing with a bank altogether. They receive cash advances immediately from a trusted third-partyprofessional trucking factoring companyand this third party takes on the responsibility of chasing your customers down for you. Freight services can now partner with factoring companies like Accutrac Capital who provide a 97% cash advance upfront for any size invoice. Unlike a bank, they do not collect interest rates, rather they charge only a small one-time factoring fee for their services. Whatever is remaining of the 3% post fee is returned to the client upon retrieval of funds.

Their flexible plans suit both small enterprises and large fleets. Fast growing businesses can apply for a factoring line of credit, while small businesses with dependable customers can get money instantly for less than 0.5% of their total invoice. Choosing the route ofinvoice factoringalleviates the frustrations and wait times associated with taking out loans using more traditional and bureaucratic methods. It is an excellent solution for maintaining financial stability when there are aspects of the job making it challenging to do so. Rather than allowing external factors to govern the speed at which your business grows, partner with an invoice factoring company and put yourself back in charge. You will never have to wait for a late customer again.