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A Good Rejection

''No'' isn't always a dirty word...sometimes it can even get you a loan.
March 1, 2000

When you're applying for a business loan, you'd logically think a lender's "no" would sound the death knell to your chances of obtaining financing from that lender. But according to Charles H. Green, author of The SBA Loan Book (Adams Media), "no" doesn't have to be the end of the line for your loan.

"There are many ways a lender can say no," Green notes. "Listening to and analyzing the negative reply to the loan request is the next step in the loan application process." Following are some of Green's translations you can use when interpreting a lender's rejection:

Once you've received a "no," Green suggests making an appointment to talk with the lender--not necessarily to change the decision but to get specific information about the objections. With good information from the lender, you can make the changes needed and resubmit to that particular institution again--or at least have a stronger loan application to submit to someone else in the future.