Why did Wells Fargo turn me down for a business loan?

Why did the Wells Fargo near me turn me down for a business loan?

If you have been rejected for any Business Loans or a Business Line of Credit, its not the end of the world.  Large banks have risk and profitability formulas for determining which types of businesses are the lowest risk and will provide the highest rate of return.  It’s a simple product of the basic finance question: “Where is the best place to invest my money that will give me the greatest return?”  Simply put, Wells Fargo has less risky and more profitable places to invest their money.

What should I do if my bank turned me down?

Consider working with a business loan broker.  Chances are if Wells Fargo turned you down for a loan or a business line of credit, then you will probably be turned down for a Chase Business Line of Credit, a Capital One business line of credit, or any other bank’s business line of credit or loan.  A business loan broker has multiple sources of alternative lenders who can provide you with the business capital you need.

Are loans from alternative lenders expensive?

Often, loans from alternative sources are not any more expensive than those from the bank.  Nevertheless, if your situation is risky, then you can expect the loan to be more expensive.  However, there is a type of source of capital that is very expensive, the Merchant Cash Advance (MCA).  MCAs are not loans; they are advances on the purchase of your future receipts.  These types of sources of funds tend to be very expensive for the small business owner.  We suggest avoiding them because they will burn through your cash flow quick.

How hard is it to qualify for a loan from an alternative lender?

Generally, it is not that difficult depending on whether you seek business capital that is appropriate for your business.  If you are a small retail store that generates sales of $500K or less, and you ask for a loan for $10 Million dollars, you will most likely get turned down regardless of how great your business plan and forecast are and how much collateral you have.  It just doesn’t make sense to the lender.  But if you ask for a reasonable amount of money for a good purpose that will benefit your business, then your chances are pretty good.  In fact, if you have the following, we can most likely get you a positive answer within 2 business days.

• Simple Application
• 3 Months of Bank Statements (all pages)
• Credit Score of 650 or greater
• List of Current Debts

Call us today to see how easy it is!

Phone: 516.265.7446