An occasional cheque bounce can happen to anyone and for many reasons, not always because of insufficient funds in your bank account. Sometimes, your signature may not match the one on file, or you could have simply written the wrong date on the cheque.
After a cheque bounce, you’re charged a penalty, and you can make the payment via another method (debit, credit, bank transfer, or through a UPI payment platform).
However, if you’re applying for a business loan and your cheques bounce regularly, lenders may think your business is in financial distress since you are unable to make payments on time!
Find out how else frequently bounced cheques impact your SME loan prospects.
When you apply for an SME loan, you need to share your bank account statements for the last 12-months with the lender. While conducting your credit assessment, the lender becomes aware of these bounces as the bounce penalty charged gets recorded on your statement.
If after the credit assessment, which includes a hard pull of your bureau report, the lender rejects your SME loan application, it can impact your future loan prospects even more!
Instead, apply for an SME loan with CreditEnable! We conduct an eligibility check for our SME customers for free before applying for a loan with one of our lender parents. If your chances of approval are low, we’ll tell you upfront and help you figure out how to improve your creditworthiness to get the loan in the future!
Business Loans. Enabled Simply.