5 Common Reasons Business Owners Get Denied for Funding, And How to Avoid Them
American Financial Services LLC
Nothing’s more frustrating than applying for business funding—and getting denied. We see it happen every day, and most of the time, it’s preventable. If you've been turned down before, don’t give up. Here's what might be going wrong—and how to fix it.
1. High Credit Utilization
When your credit cards are maxed out (over 30%), lenders see you as high-risk. Even if you're making payments on time, high balances can tank your chances.
Fix it:
Pay balances down below 30%—ideally under 10% before applying.
2. Recent Hard Inquiries
Too many inquiries in a short period sends red flags to lenders. It looks like you're desperate for credit, even if you're just shopping around.
Fix it:
Let us guide your credit pulls through a strategic plan. At AFS, we help clients stack approvals with soft or minimal inquiries.
3. Low or Thin Credit File
No credit is almost as problematic as bad credit. If you have limited history, you’re harder to underwrite—even with good income.
Fix it:
Use personal guarantor strategies or piggyback on authorized tradelines to build strength quickly.
4. Unverifiable Income or Incomplete Docs
Lenders want to see proof—bank statements, tax returns, or revenue consistency. Missing pieces lead to denial.
Fix it:
Work with a funding advisor to gather and position the right documents. We'll show you what to provide—and what to avoid submitting.
5. Applying Without a Strategy
Randomly applying for loans or cards can hurt your credit, waste your time, and block future approvals.
Fix it:
Apply with intention. At American Financial Services, we pre-qualify our clients and match them with the right lenders for their profile.
A funding denial doesn’t mean your business isn’t fundable—it means you need a better plan.
Let our team at American Financial Services, LLC walk you through it. Whether you’re recovering from a denial or just want to increase your approval odds, we’ll help you move forward with confidence.
Ready to Get Started?
If you’re ready to take your startup business to the next level, we’re ready to help. Contact American Financial Services today to learn more about our funding options and see how easy it is to get the capital you need — when you need it.
Apply now and let’s grow your business together!
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AMERICAN FINANCIAL SERVICES LLC
© 2025 | ALL RIGHTS RESERVED | LOANS SUBJECT TO LENDER APPROVAL
The operator of this website is NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lending partners. Customers who arrive at are paired with a lender or a lending partner, and redirected only to lenders or lending partners who offer business loan products.
© 2025 | ALL RIGHTS RESERVED | LOANS SUBJECT TO LENDER APPROVAL
The operator of this website is NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lending partners. Customers who arrive at are paired with a lender or a lending partner, and redirected only to lenders or lending partners who offer business loan products.