The big 'NO' then what?

The world of finance can be a hard place, many companies in search of capital funding or a boast get turned down, I know how it feels because I recently got rejected for a personal loan. and mostly when we get turned down the first thing that comes to mind is to simply visit another lender and that may be the most logical option, but also there may be some lessons to be learned from these kinds of rejections. 

If a lender denies your loan application, here are some questions that you might want to consider: 

1. is your loan request logical, reasonable, and appropriate at this time? is there another way to get beyond this financial hump other than borrowing?
2. Did you document and present your loan properly? Do company executives need to review the information shared and their style of presentation? 
3. Are there aspects of your company's financial condition that executives should be more concerned about? Does the financial statement represent the true picture? if so, is that picture sending lenders signals to which your company's managers should pay more attention? in other words are there problems that money can't remedy? if so, take care of them or you may continue to be frustrated in your search for a loan. 

The capital we are in search of will not work for free, a cost must be paid. there are good reasons for this insistence, however, capital is scarce; it is limited in the aggregate to the amount that people worldwide choose to save because for any one company to invest capital, then it must deny another company the opportunity to use it. 

The return that investors could expect to earn from the alternative use of funds is the cost of capital that any one company must earn in order to create value. 

Earning the cost of capital thus is not a mere financial matter to be ranked alongside or worse be subordinate to other corporate concerns - it is the market's mandate. 

Remember that not always the answers from investors or lenders are straight, sometimes it won't hurt to ask him or her to explain why your application was rejected. if the lender feels comfortable with you and if you show that you're looking for problems that you can then fix, then they would provide you with some feedback. 

Rather than bullying the lender into granting you the loan, try instead to learn from your mistake because we often learn more from our mistakes than from our wins.