Bank Rejected Budget 2026 - Alternative Lenders

2026 Bank Rejected Equipment Financing

Bank rejected. Application denied. Letter received. Equipment still needed. Business must continue. Alternative lenders can help.

This guide explains options after bank rejection. How alternative lenders work. What to do next.

Why Banks Reject Equipment Loans

Common Bank Rejection Reasons

• Credit score below threshold
• Business too new (under 3 years)
• Equipment too old (over 5 years)
• Insufficient collateral
• High debt service ratio
• Industry considered high risk
• Documentation incomplete

Alternative Lenders Explained

What Alternative Lenders Do

• Evaluate beyond credit scores
• Consider business cash flow
• Finance used equipment
• Approve newer businesses
• Faster processing times
• Flexible down payment options

Ing Heng Credit Alternative Terms

• Interest rate: Competitive rates
• Maximum loan: 80% - 100%
• Down payment: 0% - 20%
• Equipment age: No limit
• Processing: 24 - 48 hours

Real Bank Rejection Scenarios

Scenario 1: Equipment Age Rejection

Situation: Used excavator 7 years old. Good condition. Bank rejected due to age.

Equipment: Used Komatsu (RM180,000)

Bank: Rejected (7 years old)
Ing Heng: Approved 100% financing, 0% down

Scenario 2: Business Age Rejection

Situation: Business operating 8 months. Growing fast. Bank rejected due to new business.

Equipment: 5-ton lorry (RM135,000)

Bank: Rejected (less than 3 years)
Ing Heng: Approved 90% financing, 10% down

Scenario 3: Credit Score Rejection

Situation: CTOS score 620. Some late payments. Good business cash flow.

Equipment: Forklift (RM55,000)

Bank: Rejected (credit score)
Ing Heng: Approved 100% financing with guarantor

Scenario 4: Insufficient Collateral

Situation: No property to pledge. Equipment itself is the only asset.

Equipment: Prime mover (RM270,000)

Bank: Rejected (no collateral)
Ing Heng: Approved 100% financing, equipment as security

After Bank Rejection - What to Do

Step 1: Understand Why Rejected

• Request rejection reason from bank
• Check credit report for errors
• Review application completeness
• Identify specific issues

Step 2: Address Fixable Issues

• Correct credit report errors
• Complete missing documentation
• Reduce debt where possible
• Improve credit over time

Step 3: Apply with Alternative Lender

• Explain bank rejection
• Show business strength
• Demonstrate cash flow
• Provide equipment details

Budget Planning After Rejection

Adjust Equipment Budget

Bank rejected RM300,000 excavator. Consider alternatives:

• Used excavator: RM150,000 - RM200,000
• Smaller excavator: RM180,000 - RM220,000
• Different brand: RM280,000 - RM320,000

Higher Down Payment Strategy

Offer larger down payment to reduce lender risk:

• 20% down on RM100,000 equipment = RM20,000
• Shows commitment and skin in the game
• Improves approval chances

Add Guarantor

Partner, family member, or director as guarantor:

• Strengthens application significantly
• Enables 100% financing
• Better interest rates possible

Alternative Lender Advantages

Speed

Bank: 4 - 6 weeks
Alternative: 24 - 48 hours

Flexibility

Bank: Strict criteria
Alternative: Case-by-case evaluation

Equipment Age

Bank: 5 years maximum
Alternative: No limit

Down Payment

Bank: 10% - 20% required
Alternative: 0% - 20% flexible

2026 Rejection Recovery Tips

• Don't give up after one rejection
• Try alternative lenders immediately
• Consider used equipment
• Accept higher down payment initially
• Rebuild credit for future purchases