Ans:
A company loan application could be turned down for several reasons. The following are the primary causes:
Insufficient collateral: Most lenders will want some sort of collateral before approving a loan. The application will probably be turned down if the borrower does not have adequate collateral to secure the loan.
Poor credit history: A borrower's credit history is one of the most crucial aspects that lenders take into account when evaluating a loan application. The application is likely to be declined if the borrower has a history of late payments or defaults.
Inadequate financial documents: Lenders will ask for financial statements and other supporting documentation to determine the borrower's capacity to repay the loan. The borrower's application can be turned down if they don't offer enough supporting documents.