Reasons for Credit Refusal

Having the loan declined is a bad feeling for any business. There is a plan to grow or seize opportunity, and when you get the resources you need to finally take action, you are denied.

And this process is more common than it seems. So, check out  reasons for refusing business credit and don’t let that happen to yours.

A certain difficulty in understanding the type of credit



This situation is quite common and at times the company does not have a very clear view of which type of loan is right for your situation. For example, credit often doesn’t have to be long term, just an advance.

But, by not knowing all the alternatives and all types of loans available to him, the entrepreneur ends up opting for one that does not fit perfectly in his case. The bank realizes this and ends up denying the credit.

In this case, the solution is to study hard , not only the credit market, but also the needs of your business.

Unpaid debts

Unpaid debts


As with personal lending, business credit depends on a clean payment history . Therefore, if there are unpaid debts, the market is on alert and any loan is much more likely to be denied.

Therefore, if the entrepreneur is officially negated , in a body like Serasa, it is much more difficult to get credit. It must be ensured that both the company’s CNPJ and the entrepreneur’s CPF are not negative.

Unstable Financial Health

The bank or financial institution always wants maximum security when making the loan. Therefore, it makes a detailed investigation of the financial health of the company. Because of this, the entrepreneur must have a very clear sense of how much he is able to pay per month, because the credit will be refused if he can not.

Emergency online payday loans – The best online payday loan company


Online Application with the best online payday loan company

Wondering about the loan at Lakeshia, but you still can not make a final decision? Perhaps in taking a step forward, you will find the following article in which we reveal the advantages and disadvantages of this lender. See, then, when it pays to borrow in this company!

The Lakeshia offer is a suitable proposition for those who are looking for an offer with a longer repayment date. In this company, the repayment of the obligation can be spread even for 24 installments, thanks to which the repayment of the borrowed capital should not be too heavy for the household budget.

A loan application for payday loans is made online, use PaydayLoanHelpers. However, if you do not feel confident in the internet world, you can use the help of a company consultant. 

Lakeshia is also very flexible when it comes to the form of cash withdrawal. You can get money from the company in the form of a transfer to your account or withdraw it at the post office using the GIRO check. So if for what reasons you do not want the loaned funds to reach your account, you have a parallel solution to choose from.

The pros and cons of the loan at Lakeshia

Help us to complete this list! We collect opinions about Lakeshia and complete them on the basis of the list below. Describe your experience with Lakeshia in the comments below. All customer reviews and stories are read and taken into account by us.

The advantages of a loan at Lakeshia

  • offer including both payday and installment loans,
  • the possibility of spreading repayment even for 24 months,
  • option to submit an application online or by phone,
  • two forms of payday loans: by bank transfer or in the form of a GIRO check,
  • no upper age limit for the borrower,
  • the option to extend the repayment of the loan,
  • no costs related to repayment ahead of schedule,
  • the possibility of taking another loan before paying off the current liability,

Loans disadvantages at Lakeshia

  • the loan is available only for people over 21,
  • the need to provide documents confirming income and a bank account statement,
  • customer control in virtually all debtors’ databases,
  • low amount of installment loan,
  • no free offer for new customers.

Calculation of the debt ratio: simulator online 100% free

Debt ratio: why calculate it?

Debt ratio: why calculate it?

The debt ratio is one of the key data to study if you want to take a loan . Based on this indicator, the conditions for granting your loan may change. This is why it is important to simulate the debt ratio before taking out a consumer or real estate credit . Our debt ratio calculator gives you the information you need, with ease and without commitment.

The debt ratio makes it possible to know the share of your monthly income allocated to the payment of the installments of your various loans. The calculation of the debt ratio is therefore essential if you want to finance a project with a loan . It will verify that the new deadlines that will generate this loan will not hurt your overall financial situation.

How to calculate your debt ratio for a loan?

How to calculate your debt ratio for a loan?

The calculation of the debt ratio is simple. You need to start by listing your different sources of income as well as your fixed costs . If you take out the loan with two, do not forget to list the expenses and income of the two co-owners of the loan.

Several elements can be taken into account for the income :

  • your taxable salary;
  • your possible contractual premiums (like a 13th month for example);
  • your profits, if you have an unpaid activity;
  • your other potential sources of regular income: rents, annuities, pensions, etc.

Note : sickness benefits and exceptional bonuses are not taken into account. In addition, some financial organizations do not include allocations in the calculation of the debt ratio.

For expenses :

  • You have to add up all the regular expenses like your rent for example, any pension payments, etc.
  • Also remember to include all the monthly payments of your credits in repayment, if you have any.

Then you simply divide the sum of your recurring expenses by the amount of your income .

Finally, multiply the result by 100 . This will give you a percentage of your debt ratio.

How our debt ratio simulator works

How our debt ratio simulator works

Thanks to our simulator, you just have to fill in some information and the calculation of your debt ratio will be done automatically.

At the level of your resources:

  • Are you alone at work or does your household have two sources of income?
  • How much are your professional earnings (net wages and potential bonuses)?
  • Do you have other sources of regular income (rents for example)? If so, how much are they?

At the level of your expenses:

  • What is the amount of your rent if you have one?
  • Do you pay back a mortgage and / or consumer loans and if so, how much are their monthly payments?
  • Do you have other current expenses (alimony for example)?

You will then have immediate access to your debt ratio, as well as the amount of your remaining life.

What is the maximum debt ratio?

The typical debt ratio not to exceed is usually 33% , including the new monthly loan payments you plan to contract. Beyond this 33%, financial organizations can be more cautious to grant a loan, believing that they take a risk of unpaid too high.

However, the law does not prevent you from taking out a loan if your debt ratio exceeds this threshold. In fact, the decision is up to the lending institution to whom you are addressing. Some may refuse your loan even if you have a debt ratio lower than 33%, or accept it even if you have a debt ratio above this threshold.

In concrete terms, there may be some flexibility for specific cases, including:

  • For loans with a short repayment term : in the event of repayment difficulties on the part of the borrower, the lender has the possibility of extending the repayment term in order to reduce the amount of loan maturities.
  • For high incomes : since the rest is important, lenders can accept a higher debt ratio.
  • For civil servants : job security for teachers, gendarmes, firefighters, etc. is an additional guarantee that may encourage lenders to be more flexible about the maximum debt ratio accepted.

The Public Liability Insurance – Protection and Security for Businesses


We all know Murphy’s Law: Everything that can go wrong eventually goes awry! This also applies to company activities, services or products. And the company or the entrepreneur is personally liable for all damages that arise as a result. No matter whether people, assets or property are damaged – without a corresponding insurance cover the company or its owner is liable. That can quickly go into the tens of thousands of euros, if for example personal injury arose.

Here is an example from the files of a large German insurance company: A child crashes through a damaged stair railing that had built a craft business in the home. The child is disabled for life. The amount of compensation to be paid by the company amounts to a total of 950,000 euros, which consists of compensation for pain, house remodeling costs, medical treatment costs, etc.

Companies are liable like private persons – without liability limits


Businesses or entrepreneurs are liable like private persons without liability limits. This is what the Civil Code (§ 823 BGB) provides. Thus, with a large amount of damage, the entire company can easily be at risk – up to bankruptcy with all consequential damages for the owner himself as well as his employees who lose their jobs.

A public liability insurance is thus part of professional risk management by the management. It therefore belongs to every insurance company in its insurance portfolio. After all, insurance coverage does not only include the company as a legal entity, but also owners and employees are protected against compensation for their business activities.

What does a public liability insurance (BHV) do?

What does a public liability insurance (BHV) do?

A lot can happen when you are doing business. The damage totals can quickly go into the hundreds of thousands of euros, such as environmental or personal injury. This applies to start-up companies as well as established companies with several branches and a few hundred employees.

The BHV acts in the event of damage as a combined legal expenses and liability insurance. It first checks the claim for damages for its legality. If their experts come to the conclusion that these claims are justified, they will reimburse the claimant or the injured party up to the agreed insured sum. This may be personal, material or pecuniary damage suffered by third parties as a result of operational activities, services or products.

If the insurance company does not consider the claims for damages justified, it rejects the claims of the alleged victims. It takes over the costs for lawyers, appraisers or courts in case of litigation and thus offers the company the protection of a classic legal protection insurance.

Regular checks give security

Regular checks give security

Risk situations in companies change. In order to ensure that no false or underinsurance can develop over time, the following aspects should be considered:

  • Old contracts should be regularly checked for accuracy of fit. An adjustment of the public liability insurance by updating the insured risks with the previous insurance company can save considerable sums without reducing the insurance cover.
  • New contracts can not only provide tailor-made insurance protection but also significant cost optimization. A list of all insured risks also prevents conflicts with the insurance company in the event of a claim.
  • Sums insured must always be determined in such a way that all costs can be covered in case of damage without having to resort to own resources. This is especially true for start-ups and companies with high risk of damage.

During the consultation, management and insurance consultants jointly analyze the risk profile of the company and then determine the optimal sum insured. A professional insurance broker makes sure that the company gets its optimal insurance cover at the lowest possible price.


The First Loan for Free is a Time Trap?


The first loan is free, which is known to most of us, including advertising with the offer of Meybank addressed to new customers. It seems an interesting and at the same time a surprising proposition. Listening to the advertisements of this offer, probably more than one of you wondered what kind of parish have an interest in borrowing money for free. Certainly some of you also came to think that the first loan must have a catch for free.

How did it happen that the institutions known for providing horribly expensive loans introduced the offer, on which they do not earn? The first loan is not a free charity action, nor is a Christmas promotion. So what is it? What benefits does parabankes give you?

A way to acquire new customers?

It is certainly the way in which loan companies want, or rather try to win new customers. Just as everyone almost knows the time limits, they know their high costs. Therefore, acquiring a new client is quite a challenge for every parabank. The cost associated with taking advantage of the delay effectively scares away the majority of potentially interested.

The first loan for free is a time trap

The first loan for free is a time trap

Ask why? Well, free loans are advertised as being completely free and that’s the way it is. You borrow, for example, € 1000 for 30 days and after the lapse of time, it returns exactly the same as it borrowed, that is € 1,000. However, this is not a problem. The trap lies in the fact that the parabank counts on the fact that the borrower will not be able to return the money after 30 days. What happens then? The customer is forced to use the repayment service for another period, e.g. 30 days, but he must pay a fee for this. These are not small amounts, since the parabolas usually use the same fees when renewing, as in the case of the next loan, i.e. high. Most often they are in the amount of interest resulting from a loan, i.e. if we borrowed € 1,500 for 30 days and interest amounted to € 450, the same will cost a prolongation. There are also offers, where the interest payments on the loan amount are applied for extending the repayment for another period. Such a fee in this case may amount to over 30%, i.e. with a loan of € 1000 for the extension of the refund period, we will pay over € 300.

Situation without exit?

Of course, you can not pay your debt at all, but it is associated with even higher costs. This is no way because the lender will take the case to court. As a result, subsequent costs of court and enforcement proceedings will follow.

Count forces on intentions

With lower amounts of collected debts, we are not likely to face such situations, because we should pay back a few hundred zlotys without any problems. The problem can occur at higher sums. By borrowing, for example, € 2,000 per month, you need to be aware of the fact that in 30 days you will need to have 100% of the sum to return it. That is why it is so important to properly assess your abilities and not to borrow extensively.

Meybank earn money on clients!

Describing how the Meybank work, one word “how can not be done, how can I do it?” As you can see, the loan companies assumed that if it is difficult to get a customer interested in a loan under standard conditions, you need to find another way to get it. This is how the first loan offer was created for free. The client, who is encouraged by the lack of fees, borrows money for which he ultimately incurs the costs in the form of a payment for the prolongation of repayment for the next period. Therefore, it is safe to say that the first loan for free is a temporary trap.

Teachers’ loans: benefits for state employees

The INPDAP loans for teachers are now provided by the Public Employee Management of the INPS, the National Social Security Institute, which took over the credit services provided to the state by the former INPDAP, now closed. The transfer of responsibilities to the INPS implies that today teachers, like all other workers in the public sector , can apply to the Institute for funding. The advantage compared to loans available on the market is often constituted by convenient interest rates and more streamlined methods of accessing credit, such as the sale of the fifth.

This rate repayment formula provides for payment to be made directly through a deduction on salary or pension


Which can never exceed the threshold of one fifth of the monthly amount. This means that at any time during the loan term, the installment can never exceed 20% of a teacher’s salary . The advantage of this rate calculation mechanism is that the teacher will always know with certainty how much the payment will be, with the certainty that this will be sustainable compared to his monthly income.

The teacher who requests financing from the former management must present the last two pay slips


the CUD model and a copy of an identity document and tax code. The main requirement to be able to access the loan for state employees is to hold a permanent chair for at least two years . With this type of loan, a teacher can reach an amount of up to 60,000 euros, if his guarantees are solid. In this regard, the funding is also open to teachers who are approaching the threshold of retirement age.

As with all public employees , INPS also offers various financing solutions to teachers. In particular, there are two INPDAP loans for teachers that directly provide the INPS: the small loan , which works like a traditional personal loan and can last up to 5 years, and the multi-year loan, which instead is a finalized loan, ie requires that the amount is used for a specific purpose, specified at the time of signing the contract.

Loans in 24 hours without payroll – immediate financing

Loans in 24 hours without payroll are a category of loans aimed at those who have difficulty accessing traditional loans but need immediate liquidity. Certain guarantees are needed to obtain rapid financing: the most requested by banks is the demonstration of a stable income, in the form of a paycheck or a pension slip. However, not everyone, starting from the self-employed to reach precarious and unemployed, can boast such guarantees. What if you need financial help quickly?

Fast loans without paychecks are often included in online loans

Fast loans,money

These small loans are provided by financial companies that operate on the web, which greatly reduces the time for granting the loan. The traditional loans, in fact, provide for direct contact with the bank branch (many banking groups, however, now also operate online), a series of bureaucratic procedures to grant the amount (such as the preliminary investigation) and finally the disbursement of the loan. A long journey for those who need money in a short time. Operating online, these times are considerably shortened and flexibility is achieved.

Obviously, even immediate online loans still require some form of guarantee, such as the pay slip

online loans,money

Anyone who cannot present it may be in trouble. One of the methods to receive the financing could be constituted by the signature of a third guarantor who takes charge of any insolvency of the applicant.

It must however be specified that online funding, at most if granted in such a short time as 24 hours, is of a lower amount than those normally obtainable. The figure that can usually be obtained, depending on the company to which it is addressed, is between 500 and 1,500 euros . Therefore those who exploit this possibility gain great flexibility, but at the same time cannot expect significant sums.

It is also necessary to pay attention to the wording “24 hours”: loans in 24 hours without pay can also be advertised on the market, but one day is really a very short period to obtain a loan. Better to talk about urgent loans , which will certainly be paid out more quickly than a normal loan.