When it comes to acquiring finance for your business either to get started or expand, traditionally banks have been the popular option; however, with more than half of SME loan applications being rejected by banks every year, banks are proving to be yet another hurdle for small businesses.
Whether it is to fund start-up costs, support business growth or tide you over when trading through rougher times, businesses have conventionally turned to banks, as a trusted and known source. However, securing bank finance is not always an easy or straight-forward process.
The market for SME lending in Australia is widely regarded as being potentially $150 billion a year. That said, only $77 billion a year is lent to SMEs in Australia with the big four banks lending the bulk proportion at $70 billion. This indicates that only half the market is successful in accessing capital each year.
Even more frustrating is that banks will not always disclose why the loan application was rejected. Some of the common reasons why business loans could be rejected by banks include.
Why Banks Are Rejecting Small Business Loans
By Mark Hearl
When it comes to acquiring finance for your business either to get started or expand, traditionally banks have been the popular option; however, with more than half of SME loan applications being rejected by banks every year, banks are proving to be yet another hurdle for small businesses.
Whether it is to fund start-up costs, support business growth or tide you over when trading through rougher times, businesses have conventionally turned to banks, as a trusted and known source. However, securing bank finance is not always an easy or straight-forward process.
The market for SME lending in Australia is widely regarded as being potentially $150 billion a year. That said, only $77 billion a year is lent to SMEs in Australia with the big four banks lending the bulk proportion at $70 billion. This indicates that only half the market is successful in accessing capital each year.
Even more frustrating is that banks will not always disclose why the loan application was rejected. Some of the common reasons why business loans could be rejected by banks include.
When it comes to acquiring finance for your business either to get started or expand, traditionally banks have been the popular option; however, with more than half of SME loan applications being rejected by banks every year, banks are proving to be yet another hurdle for small businesses.
Whether it is to fund start-up costs, support business growth or tide you over when trading through rougher times, businesses have conventionally turned to banks, as a trusted and known source. However, securing bank finance is not always an easy or straight-forward process.
The market for SME lending in Australia is widely regarded as being potentially $150 billion a year. That said, only $77 billion a year is lent to SMEs in Australia with the big four banks lending the bulk proportion at $70 billion. This indicates that only half the market is successful in accessing capital each year.
Even more frustrating is that banks will not always disclose why the loan application was rejected. Some of the common reasons why business loans could be rejected by banks include.