Short history, thin credit, no collateral or uneven revenue. Revenue-based funders review the same business on deposits instead.
Check my optionsFinancing options
Banks decline small business applications for consistent reasons: limited time in business, weak or thin credit, insufficient cash flow coverage, lack of collateral, incomplete documentation or an industry the bank considers risky. Knowing the reason points to the right next step.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
A person reviews your revenue, time in business and bank activity, often within hours.
Your file goes to funders that fit it, so offers can be compared.
Net cash, total payback and payment shown before you sign.
Existing balances of $100,000 or less can be bought out.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
Time in business and documentation are common hurdles. Many banks prefer at least two years of operating history and two years of tax returns showing profit. Newer businesses, or those whose returns show little profit because of deductions, may not meet the bank underwriting model even if the business is healthy.
Credit and cash flow coverage come next. Banks typically look for strong personal credit and a debt service coverage ratio comfortably above one, meaning operating income well exceeds all debt payments. Thin margins or existing obligations can push coverage below the bank threshold.
Collateral and size matter. Banks often want collateral for larger loans and may find small loan amounts less economical to underwrite. Federal Reserve small business credit surveys have found that smaller firms and those with weaker credit are less likely to receive full approval.
Bank appetite also changes with the economy. When banks expect slower growth, they tend to tighten standards, as tracked in the Federal Reserve Senior Loan Officer Opinion Survey, which can lead to declines for businesses that might have qualified a year earlier.
What to do next: ask the bank for the specific reason, fix what can be fixed for a future application, and consider alternatives in the meantime. CDFIs and SBA microlenders may be more flexible. Revenue-based funders consider credit from 500 and focus on deposits, with decisions often the same day. Equipment financing and factoring use assets or customers credit.
MFE reaches multiple funders with one application, which helps after a bank decline because different funders apply different criteria.
Here is a revenue-based offer for a business a bank declined. Illustrative numbers.
| Amount funded | $125,000 |
| Factor rate | 1.20 |
| Total payback (amount × factor) | $150,000 |
| Fees deducted at funding (3%) | $3,750 |
| Net cash you receive | $121,250 |
| Weekly payment over 48 weeks | $3,125 |
| Same total as daily debits (~240 business days) | $625/day |
Illustrative numbers only. Your offer depends on your file; always compare net cash and total payback in writing.
| Short history or thin returns | Revenue-based funding, CDFI |
| Weak credit | Deposits-based options, credit rebuilding |
| Low debt coverage | Smaller amount, restructure existing debt |
| No collateral | Unsecured or asset-specific financing |
| Tighter bank standards | Compare non-bank funders |
Good fit:
Probably not yet:
Short history, weak credit, low cash flow coverage, lack of collateral, incomplete documents or industry risk.
Yes, the reason points to the right next step.
Historically many do, per the Federal Reserve loan officer survey.
Fix the reason over time and consider CDFIs, revenue-based funding, equipment financing or factoring.
Options begin at 500.
Yes, once history, credit or coverage improve.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding