When the bank says no! What it really means
You provided your financial data, shared your vision, waited for the call… and then came the words every entrepreneur dreads:
“Unfortunately, we are unable to approve your application at this time.”
If you’re at this point, take a deep breath.
A rejection from a bank doesn’t mean your business isn’t financeable. It simply means your project doesn’t meet their criteria.
At Jetmark Capital, we see this phenomenon frequently. Brilliant business leaders. Solid revenue. Positive momentum. But traditional lenders use an overly simplistic formula to assess risk, one that often ignores the realities on the ground and how businesses operate.
Let’s analyze together what’s really happening and, more importantly, what the next steps are.
1. Why banks refuse commercial loans (even when you do everything right)
Banks prioritize consistency over flexibility. Their decisions are dictated by strict regulations, internal ratios, and policy constraints, not always by potential.
Here are the most frequent reasons for rejection:
- The company is less than two years old.
- Revenue is significant, but profits appear low (because you are reinvesting in growth).
- Your credit score or debt-to-income ratio is outside their comfort zone.
- The collateral is insufficient.
- Your loan application doesn’t fit any of their standard products.
It’s rarely personal, but it’s always hard to accept.
2. First step: Ask why and take notes
3. Second step: explore smarter and more flexible financing options
This is where “no” becomes an opportunity.
Alternative financing is not a compromise, but the ideal solution.
Here are some practical solutions used by Canadian business owners when traditional banks refuse financing:
- Equipment Financing or Refinancing — Unlock the value of your assets to access growth capital.
- Accounts Receivable Financing — Turn your outstanding invoices into working capital.
- Asset-Backed Loans — Borrow using your inventory, machinery, or vehicles as collateral.
- Merchant Cash Advances — Ideal for businesses that make regular sales by debit or credit card.
- Private or Non-Bank Lenders — Customized structures that consider cash flow and collateral, not just credit score.
At Jetmark Capital, we help business owners find the right structure for their business. financing that truly matches their way of working: fast, flexible and strategic.
4. Step three: Rebuild, Reframe, Reapply
A rejection isn’t a closed door, but a temporary pause. After analyzing the feedback and adjusting your strategy, you’ll be able to reapply from a stronger position.
Here’s how to prepare:
- Reduce your revolving debt to improve your score.
- Present regular income or signed contracts.
- Update your business plan with realistic projections.
- Clearly separate your business and personal accounts.
With a few judicious adjustments, what was a “no” a few months ago can easily become a “yes” today.
5. The lesson behind the "No
When a bank says no, what it’s really saying is, “You don’t fit our model.”
But business owners aren’t meant to fit into molds; they break them.
You saw potential when others didn’t. You took the risk, hired people, and built something from scratch. That kind of resilience is exactly what we look for at Jetmark Capital.
Last word
The rejection of a bank is not the end of your financing story, it’s the beginning of a smarter one.
If your bank said no, don’t stop there. Let’s talk. We will explain your numbers, options and next move – no judgment, just a strategy.
Because at Jetmark Capital, we’re not here for dreamers.
We are here for the builders