The most common reasons banks give for rejecting small business loan applications are undercapitalization and too much debt.

Name: The most common reasons banks give for rejecting small business loan applications are undercapitalization and too much debt.
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Undercapitalization (or not having enough funds to start or sustain the business) and too much debt are common reasons for banks to reject small business loan applications as it increases the risk of defaulting on the loan.

The Most Common Reasons Banks Give for Rejecting Small Business