How Small Businesses Can Avoid Loan Rejection

Thousands of stunned small business owners call Dun & Bradstreet Credibility Corp. each week after they're turned down for a loan. Jeff Stibel, CEO of the business credit reporting company has a message for them: Don't blame the bank.

Instead, he says, find out how you contributed to that rejection and start working to improve your company's credit rating so next time, the answer will be "yes."  "There is so much you can do, and should do, before you need a loan," he says.

Dun & Bradstreet Credibility compiles credit reports on small businesses, which banks can buy to help make their lending decisions. In a recent conversation with The Associated Press, Stibel talked about the continuing sluggishness in bank lending to small companies. Lending rose modestly in April, according to the Thomson Reuters/PayNet Small Business Lending Index after falling the first three months of this year. Stibel agrees that banks can make it difficult for small businesses to get loans. But he argues that owners bear some responsibility when they're rejected.  Read full article.