Your business idea is solid. Your passion is real. But the funding rejections keep coming. Before you blame the market or your luck, check this list. Most startup funding rejections come down to a few fixable issues—and business credit is usually at the top.

The Top Funding Rejection Reasons

• No business credit established: Lenders see no proof your company can manage money
• Commingled finances: Banks can’t assess business performance cleanly
• Weak personal credit: While not disqualifying, it raises red flags without business credit to compensate
• Insufficient business history: Less than 1 year operational is a major hurdle
• No organized financial records: Chaotic bookkeeping signals operational problems

How to Fix It: The 6-Month Plan

Month 1: Establish all business fundamentals (LLC/Corp registration, EIN, business bank account, DUNS number)

Month 2-3: Build trade credit relationships with at least 3 vendors who report to business credit bureaus

Month 4-5: Establish a business credit card and maintain perfect payment history

Month 6: Organize financial records, pull credit reports, and apply strategically to lenders aligned with your profile

Red Flags That Kill Deals

• Mixed personal and business transactions
• Inconsistent business address or phone
• Late or missed payments on business accounts
• Unresolved negative items on personal or business credit
• Vague business plan or unclear revenue model

What Gets Funded

Lenders fund businesses with clean financial separation, organized records, established business credit, and clear revenue models. You’re likely closer than you think—a few organizational fixes might be all that’s needed.

Ready to get fundable? Start with the fundamentals. You might be just 90 days away from approval.