Overcoming Loan Denials
Embarking on the journey of a business loan application, we invariably harbor the hope of approval. Nevertheless, in the event of denial, it's important to understand there exists an extensive array of reasons behind such a decision. By acquainting yourself with these factors, you position yourself to improve upon them for your subsequent application. Remember, a single denial does not foretell future outcomes.List of Denial Reasons
Your application is missing some necessary documents or information. Learn more about overcoming an incomplete application.
We were unable to confirm the credit references you provided in your application. Learn how to help us verify credit references.
You are using too much of your available credit on your revolving credit accounts (like credit cards), which is a negative signal to lenders. Learn more about reducing excessive credit utilization.
The credit references you provided were either inadequate or unacceptable. Learn more about providing better credit references.
The collateral you provided is either insufficient or inappropriate in relation to the loan amount requested. Learn more about overcoming insufficient collateral.
You have not invested enough of your own money into the business or project, or the equity capital is insufficient. Learn more about overcoming insufficient equity capital.
You have not established a satisfactory credit history since declaring bankruptcy. Learn more about improving your credit history after a bankruptcy.
You have negative actions on your credit report such as wage garnishment, property foreclosure, repossession, collection action, tax lien, and/or judgment. Learn more about overcoming negative actions on your credit report.
You have a history of poor repayment performance with Camino Financial. Learn more about improving your credit performance with Camino Financial.
You have late or missed payments on past or present credit obligations. Learn more about overcoming delinquent credit obligations.
You have too many financial obligations compared to your income or cash flow. Learn more about overcoming excessive obligations.
You don't have an existing credit history. Learn more about creating a credit file.
Your credit history is too limited for evaluation. Learn more about improving a limited credit file.
Your business does not have enough liquid assets to cover short-term operational expenses. Learn more about overcoming insufficient working capital.
You have an ongoing or recent bankruptcy case. Learn more about overcoming a bankruptcy.
Your business has been operating for a very short time or has no financial operating history. Learn more about building your financial operating history.
You don't have sufficient management experience for the type of credit requested. Learn more about improving your management experience.
Your business is experiencing waning sales or profitability. Learn more about overcoming declining sales or profits.
The forecasted income or cash flow is not supported by reliable financial data or documentation. Learn more about better projecting income and cash flow.
Your income or cash flow is too low to support the requested amount of credit. Learn more about overcoming insufficient income and cash flow.
Your business has low profitability or is experiencing losses. Learn more about overcoming losses or low profitability.
The financial information provided is inadequate for credit evaluation. Learn more about providing the requested documents and information.
The borrower's entity or the principal source of repayment is located outside of the service area. Learn more about an out-of-area credit denial.
Your business's sales or profit is decreasing. Learn more about increasing sales and profit.
Your FICO credit score is below the minimum threshold required. Learn more about improving your below-minimum FICO score.
Your business has not been in operation long enough to meet our lending requirements. Learn more about overcoming a shorter operation history.
You have multiple loans or credit lines open, increasing the risk of default. Learn more about overcoming loan stacking.
These can range from inadequate working capital, limited or non-existent credit files, to low profitability or business losses.
Camino Financial: A Beacon of Prosperity for Small Businesses
At Camino Financial, our commitment is deeply rooted in empowering small businesses to scale new heights. We empathize with your struggle, recognizing how arduous it can be to secure funding from conventional lending institutions. Navigating the labyrinth of small business loans may seem daunting, yet, you're not alone — we're here, as your guide, fluent in both English and Spanish. Do you find yourself among the countless small business owners shying away from loan applications, fearing denial? Is this narrative all too familiar? If so, let this be your beacon of hope. Within this minisite, we unravel the complexities behind loan denials, shedding light on the most frequent reasons why small business owners face rejection. Our mission? To serve as a compass steering your venture towards success. By providing actionable insights, we aim to enhance your likelihood of receiving the much-needed approval on your next attempt. Take heart, for every 'No' faced today prepares you for the 'Yes' of tomorrow. This guide is your first step towards turning the tide. Together, let's journey towards your financial breakthrough.
