Having the loan declined is a bad feeling for any business. There is a plan to grow or seize opportunity, and when you get the resources you need to finally take action, you are denied.
And this process is more common than it seems. So, check out reasons for refusing business credit and don’t let that happen to yours.
A certain difficulty in understanding the type of credit
This situation is quite common and at times the company does not have a very clear view of which type of loan is right for your situation. For example, credit often doesn’t have to be long term, just an advance.
But, by not knowing all the alternatives and all types of loans available to him, the entrepreneur ends up opting for one that does not fit perfectly in his case. The bank realizes this and ends up denying the credit.
In this case, the solution is to study hard , not only the credit market, but also the needs of your business.
As with personal lending, business credit depends on a clean payment history . Therefore, if there are unpaid debts, the market is on alert and any loan is much more likely to be denied.
Therefore, if the entrepreneur is officially negated , in a body like Serasa, it is much more difficult to get credit. It must be ensured that both the company’s CNPJ and the entrepreneur’s CPF are not negative.
Unstable Financial Health
The bank or financial institution always wants maximum security when making the loan. Therefore, it makes a detailed investigation of the financial health of the company. Because of this, the entrepreneur must have a very clear sense of how much he is able to pay per month, because the credit will be refused if he can not.