5 Tips To Overcome Lender Objections

There are generally three scenarios in which business owners can’t get bank financing:

  1. Their loan is non-performing, and they’re asked to find new financing.
  2. The business doesn’t fit capital, debt or profit requirements.
  3. The business’ needs are beyond the bank’s capability or willingness to extend credit.


Business owners turned away by banks do have options and one of the best is asset based financing. Asset based lenders lend against a company’s accounts receivable, inventory and equipment; and some, against real estate.

Asset based lenders will issue a financing proposal which, once signed, triggers an audit to assess how the assets are performing. Lenders then schedule a call or meeting with the business owner to discuss audit results and see how issues of concern can be remedied. At this point, how well the business owner can overcome any lender objections becomes crucial in his/her ability to secure a financing agreement.

Helping the lender look past the numbers and concentrate on the business’ future plans and management’s ability to carry them out can guide further negotiations. To help business owners overcome lender objections, we offer the following 5 tips:

  1. Ask for a Call/Meeting Agenda – A heads-up so you’ll know the topics the lender wants to discuss.
  2. Be Prepared – Address all concerns listed in the Agenda even if it means bringing your CFO, CPA, operations or other business expert in on the call/meeting.
  3. Have a Clear Plan for Moving Forward – Include projections and hard data to support them.
  4. Be Candid – Address every issue. It’s okay to ask for more time to get any information you still need.
  5. Demonstrate Strong Leadership – Persuade the lender that you have the ability to do what you say you’ll do.


About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.