If you've been turned down for business funding, you're far from alone. The Federal Reserve's 2026 Report on Employer Firms, based on the 2025 Small Business Credit Survey, confirms that access to capital remains one of the biggest barriers facing small businesses.

What the data shows

• 38% of small businesses applied for a loan, line of credit, or merchant cash advance in the prior 12 months, nearly unchanged from 2024.

• Full approval rates remain below pre-pandemic levels.

• The share of applicants turning to fintech lenders rose from 17% in 2020 to 29% in 2025.

• Applicants to small banks were fully approved 57% of the time, more often than through any other channel.

In other words, demand for capital is steady, but too many owners are still walking away with a "no," or with expensive alternatives.

The problem nobody explains

Most denial letters don't tell you what actually went wrong. In our experience, the answer usually comes down to two things lenders evaluate: your business credit profile and your cash flow. Thin or inaccurate bureau data, mismatched entity records, or too few reporting trade lines can sink an application before anyone looks at your business itself.

"Banks deny. We defy," said Ray A. Smith, Founder and CEO of CredFin, Inc. "Business owners deserve to know why they got turned down and what it actually takes to get to yes."

A better path

CredFin's Capital Qualified™ + Lender Match™ System gives owners a structured path from denial to Capital Qualified™:

1. Find out what lenders see across Dun & Bradstreet, Equifax Business, and Experian Business.

2. Fix the gaps in your business credit profile and cash flow documentation.

3. Get matched with lenders whose criteria fit your business.

Want to know why you were denied? Get our free guide, "They Denied You. They Didn't Tell You Why.," at Guide.CredFin.ai, or book a Funding Strategy Session at credfin.ai/consult.

Read the original release: https://www.globenewswire.com/news-release/2026/06/22/3315251/0/en/

CredFin, Inc. is a business credit coaching and funding advisory firm, not a lender. Funding is not guaranteed; all credit decisions are made by third-party lenders. Individual results vary.