Refused Business Loan

footlong8

My girlfriend and her business partner have just been refused a business loan (just 15k). Both of them have decent credit ratings, the business plan and profit/loss looked good, and was checked by a decent accountant. To be honest we are a bit surprised.
Cant decide wether to try again with a different back or put the 15k on cards......any thoughts on where to go to apply for the loan?

Tixy

I would ask the accountant. They will have the best knowledge of which banks are most likely to lend to their particular business sector at the moment.

I wouldn't take it too personally, I've had clients refused by a couple of banks before being accepted by a third all with the same info and projections. I've also found some local bank managers being very positive and saying their bank will definitely lend before being declined at the last minute - some of then haven't yet got used to their own banks new policies.

jonesMUFCforever

Do you have audited accounts for the last 3 years - if so what do they show?

Do you have any security you could offer the bank?

CLAPTON

is this for an existing business or a new setup?
how much of their own money are they putting in?

paddyrg

Banks don't like risking money, and startups are risky. If the business doesn't have a trading history, they need to put personal collateral against the loan. Or start a smaller business and build up to a bigger one.