Small business loans are often denied for a variety of reasons. Traditional lenders have historically used more stringent decision factors and lending credit restrictions to mitigate risk. The Federal Reserve Banks of New York, Atlanta, Cleveland, and Philadelphia performed a survey. It found that only 50% of small businesses that requested funding in the first half of 2014 received any money.

The easiest method to prevent a small company loan from being denied is to be aware of the traits lenders frequently see as red flags. Undoubtedly, some banks will be more detailed than other. In general, banks are obligated by law to mail you a notification outlining the reasons why your loan application was rejected.

Here are the primary reasons why small business loans are turned down and what your company can do to avoid these drops.

Low Credit Score for small business loans

One of the most common reasons a business loan is rejected is that the company’s credit rating is lower than the lender prefers. Your company’s financial history will be used to calculate your business credit score. Lenders will then use it before approving a business loan application to determine whether your company will likely repay any debt owed.

Businesses with no history of missing loan payments are more likely to be offered highly competitive interest rates because they pose less risk to the lender. On the other hand, businesses that default or have multiple failed credit applications face more difficulties obtaining financing. Your credit score is considered when asking for a small business loan, regardless of how long your business has been in business. How trustworthy will you be when repaying a business loan if you can’t manage your credit?

Your business is new

Business lenders typically mandate a minimum period in business. It can range from six months to more than a year. You probably won’t meet these requirements if you’re looking for funding for a startup or starting a company from scratch. If your company is new, you may not have accumulated enough business credit history to qualify for a small business loan. It should be noted that vendors do not always automatically report your payments to business credit agencies. When you open an account with a new supplier or vendor, make certain that they report your payments so your company can build a good credit history.

Similarly, even if you have sufficient financial records and meet the minimum time-in-business requirements, your loan application may still be rejected because of insufficient business experience.

Without a doubt, even if you haven’t been in business for a very long time, you can have a very successful business and solid financials. However, you need to research your options before applying because the minimum time in business requirements depends on the lender and the type of financing. If you have already been turned down for a loan because you don’t have enough experience running a business, look into loans with softer requirements. Alternatively, consider delaying your reapplication and continuing to bootstrap your company.

You are not requesting enough money

Contrary to popular belief, the more money you request, the more likely you are to be approved for a bank loan. You typically can’t get business loans from a major bank for small sums of money because the cost of servicing small loans(under $100,000)is not worth it for banks.

Check your financial data and business strategy to ensure you are not underestimating the amount of capital you require. You might re apply and request a more significant amount. Look for an alternative financing source, such as a micro lender or invoice-based financing option that can make smaller loans if you don’t need more money than you already requested. If you require funding but don’t require a sizable lumpsum, consider alternatives to loans as well, such as a small business line of credit.

You have no collateral

Many lenders also require that borrowers pledge valuable business assets as collateral to reduce their risk. In the event of borrower default, the lender may attempt to recover the outstanding loan balance by taking possession of the asset. Loan collateral must therefore be valuable enough to cover the total amount of the outstanding loan. As a result, your loan application might be turned down if your company is young, you don’t have any assets to offer as security, or your assets are already pledged.

You can overcome this obstacle by selecting a lender that provides unauthorized business loans.Numerousalternativelendersalsoofferfundingwithouttraditionalcollateral.On the other hand, unsecured loans carry a higher risk for lenders. As a result, they frequently have higher interest rates and fees.

Cash flow limitations

One of the first considerations for lenders when determining whether to approve a small business loan is cash flow. They want to know that you have the sufficient cash flow to pay for your business expenses, repay the loan, and leave yourself with some extra cash. It can be a warning sign if your cash flow is inconsistent or you frequently experience seasonal slumps.

Lenders might be concerned that the cash flow history could signify future problems if the financial information suggests a poor or fluctuating cash flow. Even though it might not always be possible, lenders prefer stable business cash flow. If you provide multiple services or products, show all your company’s revenue sources—likewise the historical trend of those sales. Unsecured business loans are a great option if you need money immediately and are frequently simpler to get from alternative lenders.

You might need to consider your cash handling abilities if your loan application was denied because of poor cash flow. Poor cash flow is a significant factor in business failure. Use accounting software that makes it simple to create cash flow projections and reports, and then check your cash flow once a week to stay on top of things.

Your business is risky

Even a strong business plan might not be enough if you work in a field with high failure rates. For instance, because of their higher failure rates and potential for unstable revenue, lenders typically view restaurants as riskier than other business types. For this reason, specific industries, like the restaurant business, construction companies, agricultural enterprise, service industries like gambling, frequently have trouble getting approved for a bank loan.

Regulations that make it more difficult or expensive to operate in a sector can impact other industries. In other words, it makes a bank’s obligation to assume risk higher. As a result, banks frequently turn too their industries or tighten their qualification standards rather than take on that risk, making it even more inaccessible to most business owners.

Although you can’t change your industry, you can look for lenders who focus on it or shop at a reputable marketplace where you can compare your options.

Numerous alternative lenders target riskier industries and provide financing options that are more appropriate for those industries. However, these lenders may demand collateral or impose higher rates and fees to compensate for the increased risk.

One of the worst feelings is being turned down for a business loan when you need funding. But remember that you can try again, and it’s not personal. But once you get past the initial annoyance, it can be a teaching moment that prepares you for the next time.

Don’t let these obstacles prevent you from expanding your business successfully.

The managers or entrepreneurs are the leaders who can shape the success of their organization. For a successful run, a leader needs to ensure that the business carries out its internal and core operations Organizational Behavior plays a vital role in any enterprise’s success. It outlines the system in which the company will run, where it’ll fit in the industry and it also decides the future of the company. It defines the vision, mission, and goals of the company and outlines a way in which the members of the company will interact with each other. Thus, every manager or entrepreneur should learn the core principles of Organizational Behavior for the success of the business. Here are a few more reasons that exemplify the significance of the study of organizational behavior:

1. It helps in understanding the mission of the enterprise
Every organization has its quintessence or its purpose of carrying out the intended operations. Organizational behavior aids the entrepreneurs in defining the task of the organization- what a company will do and how it’ll do it. It defines an infrastructure that will be followed by the company throughout its run. It also emphasizes on establishing a mission statement that the company wants to achieve through its operations. The mission is not only monetary but it speaks of the company’s culture and aims at bringing a change in the lives of the customers, stakeholders and all the people involved with the company. The mission statement tells everyone about the goals of the organization and can be used to gauge the effectiveness of its operations.

2. It aids in establishing clear expectations
The organizational behavior not only helps in establishing a mission, but it also helps the managers or entrepreneurs in setting expectations for the employees, stakeholders as well as the customers. It helps in formulating the chain of command performed by each employee and also decides the kinds of vendors and customers the company should expect.

3. It helps in better decision making
The organizational behavior paves way for uniformity in the company and its core values. The establishment of the uniform mission, actions and messages facilitate the managers to make better decisions that are fruitful for the company. Organizational Behavior entails an identity to the organization so the managers can make their decision aligning with the nature of operations of the organization.

4. It ensures that managers hire the right person
The employees are the main pillars of organizational behavior. The people that bring new ideas and passion to the organization are considered as the perfect employees for the organization. If the organizational behavior is clearly defined, the newly employed candidates can easily understand their duties and it also makes easy for the managers to hire the right people and communicate with them effectively.

Monthly payments make up an important element of the auto loan. The amount of money that you will pay each month depends on a number of things; such as the money you put down, the value of the car, loan term, your current income and credit score, etc. Many a times people wish to repay their auto loan earlier than their term or wish to get the loan refinanced. Understanding the effect of paying your loan early vis-à-vis making timely payments can help you in making a well-informed decision.

Pay Early or Pay on Time: The Auto Loan Question

· Are you interested in making Early Payments?

You know you are a financially adept individual when you think about paying your auto loan early rather than spending the money on frivolous things. The following pros and cons of prepayment will take you one step closer in making the right decision.

Pros: The reduction in the interest amount can help you save a great deal of money. Paying off your auto loan early gives you the financial freedom to use that money elsewhere. Secondly, if you are going to receive a large sum of money in the near future, it is wise to prepay your loan instead of spending it elsewhere. It will make your debt-free early and allow you to live a tension-free life.

Cons: Timely auto loan payments mean that you have planned your finances in an efficient way. If you repay your loan all at once, it may project that you are unable to manage your credit. Remember prepayment of your auto loan will not hurt your credit score, however, it will not improve the score either.

· Do you believe Timely Payments are a Good Choice in the Long Run?

Small payments made every month can surely have a positive impact on your credit rating. The following pros and cons will help you clarify the advantages and disadvantages of timely payments.

Pros: Timely payments made every month are certain to keep your credit score in check. Many a times people may forget to make the payments on time. However, automatic bank payments can help you to keep your payments regular. A shorter loan term with timely payments will help you in obtaining lower interest rates and an overall cheaper auto loan deal in the future.

Cons: An automatic timely payment means that you will have to maintain a certain balance in your bank account, which may temporarily block your finances. A certain amount of your income gets allocated to the monthly payment. Compared to a prepayment strategy, timely monthly payments carry less financial freedom.

Your Auto Loan Payment Schedule: What is Best for you?

Income is an important element that decides which option you should choose between paying your auto loan early and making timely payments. If your monthly payment is manageable and your income supports the loan, you should opt for timely payments. However, if your income source is unstable and you require a car on an immediate basis, you should opt to make a prepayment of your entire loan. On the basis of your financial situation and circumstances, make the wiser choice.

Once the app is downloaded, you have little time to take a sigh of relief, and then again start focusing on making things easier for the them till their goal is achieved.

According to the AppsFlyer, an app marketing company, the global uninstall rate for apps after 30 days is 28%. Entertainment apps are most frequently deleted, whereas apps based on Finance is least frequently deleted. No matter which app category you belong to, your strategy should be to remain in the mobile phones of users for a long time, and not just sit around but to fulfill your purpose as well.

If we analyze the encounters of users with an app step by step, it can help us unveil the critical factors that influence mobile app audiences, so that we can work upon those and achieve our purpose. Here are the details:

Step1. Finding Your App in Appstore

For this, we have to first find out what exactly users type to search an app. Based on a research, it has been found that 47% app users on iOS confirmed that they found the app through the App Store’s search engine and 53% app users on Android confirmed the same.

What have been their search queries? Interestingly, as the per the data provided by the TUNE research, 86% of the top 100 keywords were brands.With little scope for non-branded categories, most of the keywords were either of games of utility apps. Common keywords in the non branded category are: games, free games, VPN, calculator, music, photo editor, and weather.

Leaving brands aside, if we analyze the user-type of a Non-branded category, we will get two types of users:

1. Users are informed, and they know what they are search

2. Users are exploring possibilities, have no precise information in mind.

If you are a mobile app development company, targeting non-branded users, then your efforts must be directed to creating apps that compel these two types of users. To do so, we have to analyze once they are on an app store, what keywords they use to search. Regina Leuwer, with expertise in marketing & communications, bring some light to the subject. She reached out Sebastian Knopp, creator of app store search intelligence tool appkeywords, who shared with her the data of unique trending search phrases. And according to that data, in 2017, there were around 2,455 unique search phrases trending in the US.

Now, if we study these data to get information, we will find that name of the app is critical to attract the attention of the users.

If your app belongs to non-branded category, then make sure your app name is similar to the common search queries but also unique in comparison with your competitors. So that when your app name is flashed, they click it on to it, finding it purposeful and compelling both.

Step 2. Installation

Remember your users are on mobile devices has limited resources, from battery to storage and RAM to Internet. Everything is limited. So better create an application that is easy to download or say get downloaded with 5 minutes. One critical advice here:

1. Keep the application file size small.

If you are a developer, use APK Analyser to find out which part of the application is consuming maximum space. You can also reduce classes.dex file and res folder that contains images, raw files, and XML.

Step 3. Onboarding

After the user has successfully downloaded your mobile application, don’t leave anything on assumptions. Guide them properly. This you can do through an onboarding process, where users can learn the key functionality and where to begin with the mobile app. Below are the 3 things you need to keep in your mind when creating an onboarding process for your users.

Short and Crisp: The entire guidance of features and functions should be completed within few seconds, with easy options loud and clear option to skip.

Precise Information: Don’t introduce them to the app. They already know what they have downloaded. The objective to inform about the key functions and features.

Allow Users to Skip: Let the tech-savvy users skip the intro. Your app is to meet their requirement and not to have a friendly session.

Step 4. Purpose and UI
Here, the stage is set for your app and it is the golden chance for you to impress your users. What is needed here is the collaboration between purpose and UI of the app. It totally depends on the problem-solving capability and ease of use of the mobile app. Interface design plays the critical role, allowing the users to access features of the apps easily and quickly to perform the task for what they have downloaded the app. When it comes to interface design, make sure that the design is interactive and task-oriented. Here are some factors that you must take care off while creating mobile app interface:

1. Usability: The Mobile phone is an epitome of convenience and if your users find it difficult to use your app, then there is no way there are going to make the space for it in their mobile phones. From screen size to the color of the app, there are many factors that are equally critical and need attention.

2. Intuitive: To create an intuitive User Interface, you have to read the mind of the users, and develop a model based on that. The next should be precise, clear and ‘obvious’ in an interface.

3. Availability: Key features should be hidden in the drop down menu or even if so, it should be obvious for the user to look into the drop-down. An intricate work of design and research is required to make essential features available for the customers and they don’t need to navigate here and there.

If you need more help with the user-interface and innovative ideas for a mobile app, write to me [email protected] and I promise to get back to you with interesting mobile app designs.