When a bank loan is denied, review the denial reason to address specific issues like credit score, income, or documentation. Improve your financial standing by paying down debt, boosting savings, or increasing revenue. Explore alternative lenders such as credit unions, online platforms, or peer-to-peer networks. Consider adjusting loan terms, such as reducing the amount or extending the repayment period. If traditional loans are unavailable, explore options like invoice financing, equipment leasing, or crowdfunding. Additionally, consult a financial advisor to assess long-term strategies and avoid high-risk alternatives.

Denial often stems from credit score inaccuracies, insufficient collateral, or unstable cash flow. According to the Consumer Financial Protection Bureau (CFPB), 60% of applicants do not know the exact reason for denial, highlighting the need for proactive review. A 2023 Federal Reserve report found that 20% of consumers with credit scores below 580 are denied loans, underscoring the importance of credit repair. Alternative lenders, including fintech platforms, approved 35% more loans in 2022 than traditional banks, per FDIC data, reflecting their growing accessibility. However, these alternatives often charge higher interest rates (12-36% vs. 6-15% for bank loans), emphasizing the need for careful comparison. SBA loans, which require government backing, had a 30% approval rate in 2023, showing partial success for businesses with strong business plans. Ultimately, addressing denial factors systematically and leveraging diverse financing channels increase approval odds while minimizing costs.