whyturneddown

 

You’ve just had a major hit to your ego!!  Don’t get MAD getting rejected is all about practice.  You didn’t hit your first pitch out of the park… neither did I !!!  So what have you learned from your turn down?

As a lender I just hated it when I had to reject an application!  It was terrible!  It was like telling someone their baby was ugly!  There is just not good place to stand. Then they wanted the reasons.  Oh this was a real NO NO a very bad idea “dive …dive…dive” my bosses just wanted the old standard  “your not a fit right now” possibly later.    We thought that it gave us a soft landing which would allow us to go back in for another look later.

But why was I turned down?  Well our old standard “straight arm”…”We take many things into consideration and your financial information does not currently meet our underwriting criteria”.  Sound familiar?  What the heck does that bank mumbo jumbo mean?  In most cases the potential client was hurt, angry and did not appreciate me rejecting their request… I ended up the villain! Then the next thing was is would hear “I have a friend who has been with your bank for 20+ years and they turned me down or called my note or some other nasty gram”.   I will NEVER go back to them.  Rarely did I get invited back to see if we could do business on another product.

YOU CAN FIX THIS!!!!  YOU MUST KNOW THE WHY BEHIND THE TURN DOWN.  Look at the major reasons below.  I’m willing to bet that your turn down is at least one or more of those biggies below.  You need to know!   Even if they won’t give the reasons to you, they might give them to me.  Why, so that we can address how you are going to fix them.  We will address changes necessary to improve your financials and ratios in hopes of improving the possibility of being accepted on this attempt.

.

What are the meaning of these reasons to me?

 

1. Cash Flow

2. Quality of Earnings

3. Debt Load

4. Size of company

5. Customer Concentrations

6. Insufficient Credit

7. Size of Availability of personal guarantees

8. Insufficient operating history