“The number one reason for small business owners to get rejected for funding is the lack of proof the business can repay its debts”
If the business owner for years up to this point has personally guaranteed all the debts of the business up until now, not only is the type of scenario ‘high risk’ for the business owner, in which the failure of the business could bankrupt the owners entire life savings, it also is a boon to the business owner, when trying to obtain a business loan.
The small business owner may appear to the banks as “over-extended” in addition to the business not being able to prove its ability for repayment on its own.