It happens. Instead of getting the money and funds that you needed, you received the dreaded, “I regret to inform you,” letter in the mail. It’s okay, the bank denying your business loan is: 1. common and 2. not the end of the world. Here are some ways to receive financing even if your business loan has been denied.

Self Financing.

You can finance it yourself through credit cards, personal loans or your savings account. This allows you to maintain full control over your business as you won’t have to sell equity for capital and it keeps you from going into debt.

Angel Investors.

Angel investors often work in groups to finance new startups and business ideas. They’re typically very hands on providing advice, sharing industry connections and guidance. Google, Alibaba and Yahoo are all products of angel investing.

Microfinance Providers and Non-Bank Financial Institutions (NBFIs).

There are non traditional loans available to business owners; however these loans are often times not secured, backed by the government, and have very high interest rates.

Partnerships and Venture Capital.

In both situations equity (a percentage of the company) is given in exchange for funding. Within partnerships, the agreement is established, typically, between two individuals and together they agree on the terms and amounts. Venture capitals are professionally managed platforms that protect the interest of several investors. These agreements tend to be very specific and strict.


Crowdfunding is a great way to generate interest and capital if you are launching a new product or service. It also serves as a great marketing opportunity for new businesses. You can offer your products and services at a discount and build a customer base before launching. Best of all, you don’t have to bargain away a percentage of your business.

Having your business loan denied is the perfect opportunity to rethink your business and what it can offer. It’s a great way to gain friends and build relationships with new people and try something new.