What to do when a bank denies a small business loan

Though some small business owners are reporting easier access to necessary corporate loans, not everyone is getting the approval they need to expand operations. The National Small Business Association released its 2010 Year-End Economic Report in February, citing an opening up of the credit markets that is promising for small businesses. According to the report, 64 percent of small businesses said they were able to get adequate financing for business needs, a 5 percent increase from six months ago. However, not everyone was able to secure the capital they needed, which prevented 13 percent of small businesses from increasing their inventory to meet demand. In addition, 18 percent of small businesses said they were unable to finance increased sales. Just because a bank refuses to provide financing does not mean a small business owner is out of financing options, according to Business News Daily. Often, an entrepreneur's biggest obstacle is a weak credit history. Luckily, some alternative lending companies use other business valuation tools, such as a prospective borrower's business performance, to grant a loan. If a business owner just needs a short-term loan to cover a shipment or a month's utilities, rather than long-term financing, short term and car-title loans offer a quick supply of cash.