Being rejected for business lending hurts, especially when it comes to your business dreams. If you’ve ever walked into a bank seeking a loan and walked out empty-handed, you know exactly what I’m talking about. But here’s the truth: rejection isn’t the end—it’s just a detour.
In this post, I’m sharing my personal story of navigating the frustrating world of business lending, what I learned, and how I finally secured the funding I needed. My goal is to encourage you, inspire you, and give you actionable advice to move forward, no matter how many "no’s" you’ve heard.
When Banks Say No: A Wake-Up Call
When I started my business shortly after COVID-19, I thought walking into my bank for a business loan was a no-brainer. After all, they managed my personal accounts and knew my financial history. But their response? A polite, “We’re sorry, but we can’t approve your loan at this time.”
It was a wake-up call. I didn’t realize just how different business lending was from personal lending. The truth is, that traditional banks tend to be very conservative when it comes to lending, especially to new businesses. Without a solid track record, strong credit, or significant collateral, many entrepreneurs find themselves rejected right out of the gate.
How I Turned Rejection Into a Game Plan
Rejection can feel like a roadblock, but it’s actually one of the most valuable pieces of information you can get. The first "no" taught me exactly what I needed to improve. Here’s how I turned that rejection into action:
1. Strengthened My Credit
Your personal credit is often the foundation for business lending, especially when you’re starting out. Here are some tools that helped me:
Secured Credit Cards: These cards let you build credit using a cash deposit as collateral. They’re great for establishing or improving credit.
Two types of secured credit cards are Capital One and OpenSky
Trade Lines: By partnering with a cosigner or using a trade line company, you can boost your credit score. While this can be costly, it’s an effective short-term solution.
Credit-Building Debit Cards: These innovative debit cards allow you to build credit without requiring approval. They’re perfect if you’re rebuilding or starting from scratch.
Kikoff and Chime are great ways to build credit without any credit checks.
2. Hired a Professional CPA
When it comes to business lending, having clean, professional financials is non-negotiable. This is where a good CPA becomes your best friend.
I can’t overstate the importance of well-organized financial records. When lenders review your application, they don’t want to see incomplete or messy documentation—they want clarity. A CPA can help you prepare polished balance sheets and income statements that make underwriters’ jobs easier.
If you’re in Central Ohio, I highly recommend PW Partners CPAs. Their team is fantastic, and Naja, my CPA, specializes in working with service-based businesses like mine. You can learn more about them here.
3. Built Relationships with Smaller Banks
One of the best pieces of advice I ever received came from a friend who owns a multimillion-dollar business. He told me that even his company struggled to get funding from large banks. Why? Big banks are often more conservative and have stricter lending requirements.
Smaller banks and credit unions, on the other hand, are more aggressive. They have quotas to meet, especially toward the end of the month, and they’re often more willing to work with small businesses. Establishing a relationship with a smaller bank can be a secret weapon for entrepreneurs.
If you’re in Central Ohio, I recommend First Financial Bank. They’ve been great with business lending for service-based businesses like mine. Check them out here.
4. Worked With a Loan Broker
One game-changing step in my journey was partnering with a loan broker. These professionals act as a bridge between you and lenders. They have established relationships with banks and can help you secure funding by presenting your application to multiple lenders at once.
Here’s the advantage: loan brokers understand what banks are looking for. They help you gather the necessary documentation, ensure your financials are organized, and pitch your loan application to the right institutions. Often, banks will compete for your loan, which increases your chances of approval and may even get you better terms.
Yes, brokers charge a fee (typically 1-2% of the loan amount), but their expertise and network can save you time, reduce stress, and often pay for itself in the long run.
The Takeaway: Someone Will
If there’s one thing I want you to take away from this post, it’s this: don’t give up. The world is big, and it’s full of opportunities. When one person says no, it doesn’t mean the answer is no forever. It just means you haven’t found the right person yet.
I have a personal mantra: “Someone will.” It reminds me that, with persistence, everything is possible. You just need to find someone—the lender, partner, or ally—who sees your potential.
If you’ve been turned down by big banks, start looking at smaller lenders and credit unions. They’re often hungrier for your business and more flexible in their lending requirements. Build relationships with them, present yourself professionally, and never stop improving your credit and financial foundation.
The journey to securing funding may not be easy, but it’s worth it. Every rejection is a step closer to the person who will say yes.
With lending, you JUST gotta keep trying. There's a bank or lender out there that'll help you.
Great advice on credit building