5 Common Reasons Business Loans Get Denied—and How We Solve Each One (Without the Runaround)

You’ve got big plans, solid revenue, and a great team. But when it comes time to get funding?

Rejected.

Sound familiar? For business owners, navigating funding can feel like a game of dodgeball—except the balls are thrown by lenders who don’t stick around to give you a second chance. Here’s the thing: rejections usually come down to the same predictable reasons.

So, let’s talk about the top five reasons business funding applications get denied—and more importantly, how BDA Solutions makes sure our clients don’t have to deal with them.

Reason #1: Low Personal Credit Score

Let’s face it, personal credit is like the awkward relative at Thanksgiving dinner. Even though your business is making money, lenders still want a peek into your personal credit, and if it doesn’t impress, your application can go from “In Review” to “Denied” in seconds.

Here’s where BDA Solutions is different. If you have been following me for any length of time, you know what we do! Expect the expected - RESULTS! After funding, we work on repairing your credit—for free. That’s right. We’re not charging extra, and we’re not using it as a reason to deny you like other brokers. We’re helping you get your foot in the door and then making sure that, next time, your credit score won’t stand in the way.

Reason #2: Insufficient Business Revenue

You might be thinking, “But my business is bringing in money every month!” That may be true, but lenders look for consistent, predictable, and often high monthly revenue. If it’s below their arbitrary cut-off, they shut the door. No explanations, no solutions.

Here’s our solution: we offer consulting that helps you make your business operations leaner and more profitable. Our team digs into your business’s processes to find hidden inefficiencies and extra profit potential. We’re not here to throw money at problems and walk away. We’re here to work with you, to make sure your revenue becomes a green light for lenders.

Reason #3: Limited Time in Business

If you’re in the start-up phase, lenders treat you like you’re still deciding if this whole business thing is even for you. Most traditional lenders want to see at least two years in business, which is rough if you’re just getting off the ground. Many brokers won’t even touch “start-ups”—it’s the dreaded word no one wants to deal with.

We see things differently. Our 0% interest business credit lines are designed just for early-stage businesses. If you’ve got strong personal credit, we leverage it to get you credit that reports to your business’s EIN, helping you build your business credit profile from day one. Other brokers will tell you to come back in two years. We say, why wait to start building?

Reason #4: High Existing Debt

Heavy debt or multiple loans? Lenders will either ghost you or hit you with terms that feel more like punishment than help. With traditional brokers, you’re on your own here—they’ll just tell you, “Too much debt. Sorry!”

Our approach? We’ve got a business debt negotiation program to help ease cash flow issues and even restructure your debt. We work to get you compliant, get you out of the hole, and get you back in the game. The result? You’ll be in a stronger position for funding down the line—without lenders turning you away just for having had a rough patch.

Reason #5: Missing or Incomplete Documentation

Let’s be real: if your paperwork isn’t in order, getting funding becomes a guessing game. Many brokers will push through an application, cross their fingers, and hope something sticks—even if it’s bound to fail. At BDA Solutions, we don’t believe in wasting your time (or ours) on applications that won’t go through. We know what lenders are looking for, and we’re upfront about what will—and won’t—qualify. If your business tax returns haven’t been filed, for example, we won’t just “give it a shot” and hope for the best. We’ll work with you to find real solutions or alternative funding paths that fit your current situation.

Accountability matters, and we expect business owners to stay on top of their records. But here’s the difference: we’re here to guide you through the requirements, ensuring you’re applying for capital you can actually secure. Unlike brokers who only care about quick approvals, we invest the time to explore options that might take a little extra work but bring you the best results.

?No guessing. No shortcuts. Just a clear, honest path to the funding you need.

The Bottom Line? We’re Different.?

Most brokers do the same thing: they take your application, hope for the best, and if it doesn’t work out, they send you on your way. At BDA Solutions, we’re about real, long-term solutions. We don’t leave our clients stuck with vague reasons for rejection; we get to the bottom of it and fix the issues standing in your way.

?Ready to get serious about funding your business? Fill out our intake form, and let’s get you set up for success, not just this time but every time you seek funding.

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Until next time... slay the day!

Jose

BDA Solutions

[email protected] | 872.265.1570 | www.BDAsolutions.biz