Stop Waiting For The Business Loan Decision From The Bank. Here’s How.

time guy.jpg

Did they promise to call?

(edited for 2019)
A modern horror story.

“Oh, yes! We will certainly try our best to grant you the loan. Just submit the documents and we’ll let you know within 48 hours if you qualify!” says a chirpy voice.

Painstakingly, the business owner gathered all required documents from varied sources and submitted them after 2 weeks.

Another week goes by, going back and forth over e-mail about missing or erroneous documents.

She promises to call back after receiving all the documents but actually, she had already shredded your documents.

That, unfortunately, will be the last time you hear from anybody from the bank.

This is the “Slow No”. The silent business loan rejection.

The frustration is universal.  Cartoon from  US business loan info  website

The frustration is universal.
Cartoon from US business loan info website


The reasons are simple

Dealing with a bank is often a confusing, love-hate relationship. You need them, businesses can’t function without them. But at the same time, you don’t feel that they are helping you when you
need them.

“Slow No” often happens when the effort-versus-reward scale is not balanced, where there are minimal rewards for serving a client who doesn’t qualify for the loan.

Moreover, when you apply online directly, your request is handled by a digital administrator who processes these leads before passing it to a Relationship Managers.

Without an existing connection, it is easy for the Relationship Manager to ignore the applications from the companies that are not eligible for a business loan.

(Many banks use strict criteria to govern business loan eligibility. e.g. not profitable in the last financial year, no unsecured loans. Thus, it is easy to determine eligibility in a non-ambiguous manner)

Stop waiting for the business loan decision, here are 3 things you can do to get the answers you need.

1. Call your relationship manager

If you have their contact details, but please be nice.  The relationship managers are almost always overworked with a portfolio of clients to handle. But more importantly, remember that he/she is your advocate in the bank and being nice is never a bad idea.

2. Don’t wait for your preferred bank, apply to multiple banks, financial institutions or fintechs

Like job applications, the more you send out the better your situation will be. If you don’t get a response from the local incumbents (pickier), there are still smaller and hungrier institutions who might reply.

3. Hire a business loan broker

If you can afford it. They usually charge around 2-5% of the approved loan amount, but collect only if they manage to get the loan for you. Contracts will be signed to prevent disputes.

Happy and free people who don’t need to work.  Photo credit:  pexel

Happy and free people who don’t need to work.
Photo credit: pexel


pssst! Why not use LendingPot’s Business Loan Marketplace?

  1. Guaranteed response from relationship managers from various banks, financial institutions and fintechs!

  2. Access many different relationship managers at once!

  3. It’s a free service! We don’t even collect referral fees from the banks!


About The Author


Eric Koh is passionate about helping SMEs grow and has spent years interacting with business owners at OCBC and IFS Capital. He is interested in 70s Rock n Roll, the odd novel and copious amounts of historical trivia.

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Eric Koh