My bank said no. What now?
What to do after a bank turns you down, and the routes that do not depend on a bank saying yes, cheapest first.
A no from one bank is not a no from everyone. Start by finding out why. Under the Equal Credit Opportunity Act (Regulation B), a lender that turns down your business must tell you its decision and give you the reasons, or tell you how to ask for them. If your business had sales of $1 million or less last year, the decision is due within 30 days of a complete application. If sales were higher, you can ask for the reasons in writing within 60 days of being told. The reason tells you whether to fix something first, such as missing records or a thin credit file, or to look elsewhere.
A bank's no can also be where SBA lending starts. The SBA backs loans only for businesses that cannot get the credit they need on reasonable terms without its help, and its Lender Match tool puts you in touch with lenders that make SBA-guaranteed loans. Community development financial institutions (CDFIs), certified by the US Treasury, exist to serve people and places that lack access to finance.
The routes below do not depend on a bank. Some are cheaper than a bank loan, such as getting paid sooner or spreading a tax bill. Others are faster but cost much more, so read the downsides first.
27 routes to look at, cheapest first
Compare the first 4 side by side- L0
Free or nearly free
Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees.- Own cash and no-cost
Customer prepayments, deposits and pre-orders
Ask customers to pay some or all of the price before you deliver. The cash comes in before your costs go out, so you need to borrow less, but until you deliver you owe customers the goods or their money back.
Days - Own cash and no-cost
Late fees and Prompt Payment Act interest
Getting paid what you are owed, sooner: interest that federal agencies must add when they pay you late, and late fees you write into your contracts with private customers. It costs nothing to claim, but it only works if your paperwork and terms are in order.
DaysNot a raise - Own cash and no-cost
Supplier trade credit
Your suppliers let you pay for goods or services some time after you receive them, often 30 or 60 days later. Usually free if you pay on time, but giving up an early-payment discount can make it expensive.
Weeks - Supplier and buyer-led finance
Federal contract financing
Payments a federal agency makes to its contractor before delivery, as costs are incurred or milestones are met, plus the right to assign contract payments to a bank as security. No separate charge, but it has to be in the contract, and it is meant to show up in a lower price.
Weeks
- Own cash and no-cost
- L1
Very cheap or subsidised
Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved.- Own cash and no-cost
IRS payment plans
An agreement with the IRS to pay federal tax you owe over time instead of all at once. It eases cash flow, but interest and penalties keep growing until the bill is paid.
DaysNot a raise - Government-backed and community lending
Community development lenders (CDFIs)
Loans from community development financial institutions: mission-driven lenders certified by the US Treasury that serve low-income communities and people who find it hard to get finance elsewhere, often with advice alongside.
WeeksPersonal guarantee likely - Government-backed and community lending
SBA 504 loans
Long-term, fixed-rate financing for buildings, land and long-life equipment, split between a bank and a nonprofit Certified Development Company backed by the SBA. You usually put in 10% yourself.
MonthsUp to $5.5mPersonal guarantee likely - Government-backed and community lending
SBA Microloans
A small business loan of up to $50,000 from a nonprofit community lender that the SBA funds, for working capital, supplies and equipment. The average is about $13,000.
WeeksUp to $50kPersonal guarantee likely - Government-backed and community lending
USDA farm loans (Farm Service Agency)
Loans for family farms and ranches from USDA's Farm Service Agency, or from a bank that FSA guarantees. For land, buildings, equipment, livestock and a season's costs. Direct loans have fixed rates set by FSA and go to farmers who cannot get credit elsewhere; guaranteed loans go up to $2,558,000.
MonthsUp to $3.2m - Supplier and buyer-led finance
Supply chain finance (supplier finance programs)
A large customer sets up a program with a bank or finance company so that you can choose to have its approved invoices paid early, for a charge, instead of waiting until the payment date.
Days
- Own cash and no-cost
- L2
Mainstream secured debt
Standard borrowing from banks, credit unions and mainstream lenders, often secured on assets or backed by a personal guarantee.- Government-backed and community lending
EXIM working capital guarantees and export credit insurance
The Export-Import Bank of the United States (EXIM) guarantees 90% of a bank's working capital loan to an exporter, and insures exporters against foreign customers not paying. Its authority to take on new business ends on December 31, 2026 unless Congress extends it.
Weeks - Government-backed and community lending
SBA 7(a) loans
A business loan of up to $5 million from a bank or other lender, with part of it guaranteed by the SBA, for businesses that cannot get the credit they need on reasonable terms elsewhere.
MonthsUp to $5mPersonal guarantee likely - Government-backed and community lending
SBA export loans
Bank loans and lines of credit of up to $5 million for small businesses that sell outside the US, with the SBA guaranteeing up to 90% so lenders take on export risks they would otherwise turn down.
WeeksUp to $5mPersonal guarantee likely - Government-backed and community lending
SBA Express loans
A loan or line of credit of up to $500,000 from a bank or other lender with SBA Express authority. The lender decides under its own procedures and the SBA guarantees half, so there is less SBA paperwork than a standard 7(a) loan, but the same rate caps and the same rules on who can borrow.
WeeksUp to $500kPersonal guarantee likely - Government-backed and community lending
SBA lines of credit (CAPLines and others)
Bank lines of credit of up to $5 million for working capital, contracts, seasonal peaks or building projects, with the SBA guaranteeing part so lenders will say yes. Rates are capped, but owners usually guarantee the line and the lender watches your receivables and inventory closely.
MonthsUp to $5mPersonal guarantee likely - Government-backed and community lending
State small business capital programs (SSBCI)
Loans and investments that a state, territory or Tribal government helps a bank or fund make, using federal SSBCI money: it buys part of the loan, guarantees it, puts up cash collateral or insures it. You apply to the bank or fund, and what is on offer differs from state to state.
MonthsUp to $20mLoans, or shares if you choosePersonal guarantee likely - Government-backed and community lending
USDA Business and Industry loan guarantees
A loan from a bank or other lender, with up to 85% guaranteed by USDA Rural Development, for businesses, cooperatives and others whose project is in a rural area. Up to $25 million, for up to 40 years, for buildings, equipment, buying a business and more.
MonthsUp to $25m
- Government-backed and community lending
- L3
Specialist secured debt
Borrowing secured on specific assets such as invoices or inventory, with more fees and conditions than mainstream debt.- Asset-based and specialist lending
Accounts receivable financing
A loan or line of credit secured on your unpaid invoices. The invoices stay yours, you usually keep collecting from your customers, and how much you can borrow rises and falls with what they owe you.
Weeks - Asset-based and specialist lending
Asset-based lending
A revolving credit line secured on your receivables and inventory, where how much you can borrow moves with the value of those assets. Flexible for growing or seasonal businesses, but closely monitored and usually dearer than ordinary bank lending.
Weeks - Asset-based and specialist lending
Inventory and floor plan financing
Loans secured on the goods you hold for sale. Dealers of vehicles, boats, equipment and similar goods use floor plan lines that pay for each item and are repaid as it sells; other businesses borrow a smaller share of their stock's value.
Weeks - Asset-based and specialist lending
Invoice factoring
A finance company (a factor) buys your unpaid invoices to other businesses at a discount, pays you for them before your customers do, and collects the money from your customers.
Days - Asset-based and specialist lending
Purchase order and contract financing
Money to fill a specific order or contract you have won but cannot afford to carry out, repaid when your customer pays. The SBA backs one version through banks; specialist finance companies offer others on their own terms.
WeeksUp to $5mPersonal guarantee likely - Asset-based and specialist lending
Spot factoring (single invoices)
Selling one unpaid invoice, or a few, to a factor for cash now, without signing up to sell it all your invoices. Useful for an occasional large invoice, but each deal is priced on its own.
Days
- Asset-based and specialist lending
- L4
Expensive or fast
Quick to arrange, often unsecured, and usually the most expensive way to borrow.- Alternative and fast debt
E-commerce and payment platform finance
Financing offered by the platform you sell through or take payments with, worked out from your sales there and repaid automatically as a share of each sale. Quick and simple, but only for its own sellers, and a fixed fee can make it expensive.
Days - Alternative and fast debt
Merchant cash advance
A lump sum now in exchange for a share of your future sales, usually collected by daily or weekly withdrawals from your bank account until a fixed total is repaid. Fast, but one of the most expensive ways to raise money.
DaysPersonal guarantee likely - Alternative and fast debt
Online business loans
Term loans and lines of credit applied for online, often from finance companies rather than banks. Decisions can come within days, but rates run well above bank loans, and payments may be taken weekly or even daily.
DaysPersonal guarantee likely - Alternative and fast debt
Revenue-based finance
A lump sum repaid as a fixed share of your monthly revenue until an agreed total is paid back. Payments fall when sales fall, but the total is fixed, so repaying quickly makes it very expensive.
DaysPersonal guarantee likely
- Alternative and fast debt
Worth knowing
- Ask the lender for its reasons in writing, and check your business and personal credit reports for mistakes before you apply again.
- Be wary of anyone who promises guaranteed approval or charges a fee up front. In Georgia and Kansas, brokers of business finance may not charge you an advance fee at all.
- The FTC has sued a company that advertised business loans but instead opened credit cards in owners' names and charged 10% of the credit it got. You can apply for credit yourself, for free.
Sources
- 12 CFR 1002.9 (Regulation B): notifications, including to business credit applicants · checked October 17, 2026
- 13 CFR 120.101: credit not available elsewhere · checked October 18, 2026
- SBA: Plan your business (fund your business: Lender Match) · checked October 17, 2026
- CDFI Fund: CDFI Certification · checked October 17, 2026
- Georgia SB 90 (2023), as passed (Act 78): O.C.G.A. 10-1-393.18(f), brokers · checked October 17, 2026
- Kansas Statutes 75-786: prohibitions on brokers (2024) · checked October 17, 2026
- FTC: action against Seek Capital's business finance scheme (November 2024) · checked October 17, 2026
Facts about each route are sourced on its own page.