before applying for a loan to better understand your approval odds and the potential interest rate you’ll qualify for.Where possible, be prepared to provide business tax returns from the previous two years. Also compile copies of your personal tax returns and IRS documents for the same period of time. Personal returns will be especially important if your startup is brand new and lacks past returns, and may be necessary for all of the business’ owners and registered agents.
If you don’t qualify for a traditional startup loan or a business loan for bad credit, consider other options like aWhat If You Are Denied a Startup Business Loan? Luckily, there are a number of steps you can take if you are denied a startup business loan. Start by finding out why your application was denied. This may be a matter of contacting the lender directly or, in the case of an SBA Microloan, reviewing the notice of denial.
Once you understand why your application was rejected, take steps to address those shortcomings. This often involves waiting to borrow until your startup has more established financials, or taking steps to improve your personal credit score by paying down debt and making on-time payments. Alternatively, consider another type of startup financing with less stringent lending requirements. For example, if you are denied a traditional loan, a business credit card may offer the funds you need with less robust qualifications. If your startup is simply too new to qualify for any kind of conventional financing, consider starting a crowdfunding campaign or working with friends and family to raise the funds you need.