How to Secure Business Loans When Banks Say ‘No’
While interest rates have decreased 50 basis, banks continue to decline business loans and add more restrictive financial performance covenants. Now more than ever, lower to middle market companies are beginning to hear a frustrating “No” more often. Rejection stings. It often stems from issues like cash flow coverage, high leverage, or liquidity shortfalls. These issues don’t fit a bank’s “credit box.”
But a “No” from your primary bank does not mean your options are exhausted. It means it’s time for a new strategy. One that works in your favor!
Avoid Business Loan Rejections:
Protect Your Company’s Reputation
It may seem logical to approach several banks when one says “No.” But that strategy doesn’t work anymore. Now, regulations ensure that every bank across America has nearly identical standardized loan policies. These policies mean every bank has a nearly identical credit box. Therefore, business owners must understand that when one bank says “No’, other banks are more likely to say “No” too.
Do bankers gossip? YES! Lenders often talk to one another about declined companies. A history of declines might make lenders hesitant. This happens even when your financial profile should qualify you for credit. There is a proven solution created by a former commercial and Asset-Based-Lender (ABL) to help when your bank says “No.”
Green Zone’s Proven Strategy for Securing Business Financing
At Green Zone Capital Advisors, we specialize in understanding the barriers preventing businesses from securing bank financing. Many bankers refer clients to Green Zone because we get results the right way.
Our proven strategy starts with a deep analysis of your financial reports. From there, we provide guidance on improving your credit profile. We get your credit memo in front of the right lenders. This maximizes your availability with the right loan structure to support your cash flow needs. Green Zone creates a stronger capital request that’s more compelling and directed to the right lenders.
Find the Right Lending Partner with Green Zone
Working with the wrong lender is time consuming and stressful. Green Zone’s success comes from having access to multiple credit boxes from hundreds of lenders. Green Zone assists with loan renewals. We help with restructuring and identifying quality private capital financing options. This positions your business for a stronger commercial banking relationship.
Take Control of Your Business’s Financial Future with Green Zone
If your bank recently declined your request for a credit line increase or renewal, don’t jeopardize your reputation. Avoid applying to multiple banks. Contact Green Zone Capital Advisors instead. Let us help you get the funding you need to support your company’s growth goals. Reach out today to take the first step toward securing your financial future.
For Bankers: A Trusted Partner for Your Business Clients
If you’re a banker experiencing clients who don’t fit within your credit parameters, reach out. Schedule a call with Green Zone today to discuss the scenario. We were one commercial lenders who bring an advisory approach to helping your client access capital. Our ultimate goal is to help the client return to the referring bank. This is how we protect our banking partners and their clients. Win/Win right?
