Why Is It Difficult For a Business to Get a Business Loan?

Why Is It Difficult For a Business to Get a Business Loan?


It is only difficult for some businesses to get loans. The main reasons why a business is denied for a loan is that they don’t have enough of a track record, and they have too low of revenue.

What that means for a lender is that they’re not confident enough that you’ll be able to make repayments on your loan, so in those cases it will be difficult for a business to get qualified.

But if you’ve been around for more than a year, if you generate more than $10,000 a month in revenue, then you will have no problem getting approved for a loan. 

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Vlad Sherbatov

Vlad is the President and Co-Founder of Smarter Loans, Canada's original and largest loan comparison website. He is a passionate entrepreneur and business leader in the Canadian financial sector. He was selected as a 2019 Top 25 Leaders in Lending by the Canadian Lenders Association. Vlad is an author at Smarter Loans, and has been featured in publications like the Toronto Star and National Post, among others.