I do not know why my business loan application got rejected.
There can be a few reasons for your loan application rejection:
- One reason can be no credit history or poor credit history. You should do a study of your credit, and try to improve it if required. Because no credit or poor credit is a major point for rejection.
- Other reason can be too much credit. If you have taken many loans, the lender might think that your business can become debt-ridden in near future, which can be another reason for rejection.
- Please check if all the business details you have included is correct. If an error is found by the lender, your application can be rejected.
- Another reason can be that if your business belongs to a risky industry, the lender will not find it a great deal to lend you money.
Consider these points before applying for a loan next time.