The process of applying for a loan for your SME can be a hassle to bear with. It is even worse when your business is unable to get the loan it requires. There are many issues to watch for regarding what might make it harder for you to get the loan that you deserve. However, as you will see later, you may not have to worry about not being able to get a loan when you consider what you can get out of a project.
Your SME needs an appropriate budget up and running. The budget should include support for what your business will spend and how that money will be doled out. A business that does not have a clear idea of what it wants to do with its budget will surely struggle. Here is our previous post about money management.
Perhaps your business has unpaid taxes that it is struggling with. Such taxes can add up over time. Governmental bodies that you owe that money do might add interest or added fees to the taxes you owe. Lenders might not be willing to give your SME a loan if you have lots of unpaid taxes to bear with.
Your business’ credit rating is a measurement of its work that needs to be reviewed. When a business has a poor credit rating, it is likely going to struggle to acquire money. The business might not have full control over how its funds are organized. It may not be able to get its debts paid off on time. Therefore, the credit rating will take a huge hit, and it will become harder for a loan to be provided. A lender might assume that the SME will not have the capacity to pay off that loan over time.
Regardless of where your debts are from, you might bear with more debts than what you can afford to handle. These debts can be extremely high in value depending on what you have. These debts might come from funds you owe to other businesses or even from prior loans or investments you have yet to pay off. The high debts that you might struggle with can be a real burden to bear with. Lenders may not be willing to help if they notice that you are struggling to get the money you need.
The signs that your SME will struggle to get a loan are bothersome problems that deserve to be explored in detail. However, the good news is that you do not have to bear with significant issues relating to loans forever. B2B lending platforms like Debitum Network, Mintos, Assetz Capital, Bondora, Grupeer, Ratesetter, Twino, Zopa or Funding Circle will provide SMEs of all kinds with extra help for getting their loans set up. This includes working with a decentralized network with many investors from around the world available to help you with getting your loan covered the right way. You will be impressed with how flexible and easy it can be to secure investment for businesses that traditional institutions like banks shy away from.
Debitum Network platform release coming in September 2018.