When you apply for a business loan, there are items lenders check for approval.
In most cases, the business loan officer sitting across the desk from you has no clue as to what these items are. Their job is to take your application, feed it into the computer, and see what the computer says. Well the computer says, "you are declined" because the computer has checked your lender compliance items and found that 1 or 20 of them are not completed. Having even one incomplete lender compliance item will result in being declined, and that loan officer will not be able to tell you why.
So let's look at why you got declined because of Lender Compliance:
Decline Item # 1 - Business Credit. The lender's computer just checked your business credit reports, and you either had no business credit at all, or your business credit scores were below 70 with all three major business credit reporting agencies, so your business loan application was declined.
Decline Item # 2 - Business Address. The lender's computer just checked your business address against the USPS database, and it came back as non-business, so your business loan application was declined.
Decline Item # 3 - Business Phone. The lender's computer just checked your business phone number against the FCC database, and it came back as a cell or residential phone number, so your business loan application was declined.
Decline Item # 4 - Entity In Good Standing. The lender's computer just checked with your Secretary of State and your business was not listed, or it was listed as "not in good standing", so your business loan application was declined.
Decline Item # 5 - National 411. The lender's computer just checked with the National 411 Directory Assistance, and your business was not found, so your business loan application was declined.
And there are typically about 15 more items that lenders will check. There is a reason that as high as 90% of all business loan applications get declined. It is because there is a lot more going on in the background for a business loan application than there is to a personal loan application. So there is a lot more you need to know before you apply.
Level4Finance exists to help you know everything you need to complete before you apply and that everything you must do before you apply has been done. When you take the business finance pre-qualification test, you can be assured that when you apply you are ready to be approved.