Lost business funding? 4 tips to quickly recover.

Take these steps to keep your company running if you have lost business funding from your bank. 

Few events are more unsettling for a business owner than losing the financial support of their bank or lending institution. Yet, part of being a resilient business leader is tackling sudden changes and coming out on top. 

As bank’s lending criteria becomes more stringent, many businesses have had to face the reality that traditional financing options aren’t available. Though there have been government programs created to help business owners, not everyone will qualify — or you may still need additional working capital.

Here’s what you can do to survive if you have lost business funding from your financial institution:

1. Update your financials

To uncover which solutions will be best for your business, update your forecasts and business plan as quickly as possible.

Perform a credit check on your company and identify any problematic areas that you can correct before approaching a new financial institution. You should also conduct a registration search to see if any of these registrations need to be dealt with before talking to a lending partner.

2. Reach out to your network

Once you’re in a position to put your best foot forward to a new lender, start working your network of contacts. Ask them if they have connections with banks and other lenders that may want to do business with you. Discuss this with your accountant, lawyer, insurance broker or anyone else you think can refer you. 

But sometimes conventional banks won’t touch less-than-stellar businesses. If your business is hurting and out of financial covenant, you’re going to have to reach beyond conventional banks and approach non-traditional funders such as invoice factoring partners and asset-based lenders.

3. Don’t overlook your curb appeal

Whomever you approach, preparation is key when looking for a new funding partner. Not having an up-to-date financial statement is a red flag for lenders that can easily be avoided.

Professional lenders will check into your background and it’s wishful thinking to believe that they won’t find shortcomings — or worse, skeletons. And in this era of pervasive social media, examine your online presence, including your personal one, for anything that may cast you in an unflattering light. Any content that shows you behaving irresponsibly could affect your credit rating and, ultimately, your next banking or lending relationship.

Want to learn how to become lender friendly? Get our Lender Friendly Guide here.

4. Stay current with market trends

If your business is shipshape, keep an eye out for changes in the economic climate that may sideswipe you, as the banks tend not to view individual businesses in isolation. Stay current with business reports, as banks will often express concern about certain sectors in the media. 

If the banks announce that they are reducing their exposure in your industry, then it’s time to get proactive. Begin making contingency and continuity plans in the event that your current funding becomes unavailable or limited.

Ready for help? Access the working capital you need with Liquid Capital’s Alternative Funding Solutions.


At Liquid Capital, we understand what it takes for small, medium, and emerging mid-market businesses to succeed – because we’re business people ourselves. Our company is built on a network of locally owned and operated Principal Offices, so whenever you’re talking to Liquid Capital, you’re talking directly to your funding source and a fellow business person.

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