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Nav Launches Service for Small Businesses Rejected for Financing

Nav has launched a “next best option” service for small businesses that have been rejected for a credit card or loan.

A new addition to Nav’s financial health platform for small businesses, this service aims to provide transparency and guidance for these small businesses that are trying to access capital, the company said in a Wednesday (Jan. 17) press release.

“We understand that every rejection can be disheartening, but it’s also an opportunity to reassess and explore more suitable options that Nav can match them with,” Neha Komma, vice president of product at Nav, said in the release.

Nearly half of all small business loan applications are declined, according to the release. This frustrating experience often leaves business owners without much context or guidance on what to do next.

Nav’s platform, which aggregates credit and financial data, already allows small businesses to understand all their funding options before applying, the release said.

Now, with its latest product evolutions, it can provide clarity on small business owners’ next best option after being rejected for a credit card or loan, per the release.

One common challenge faced by business owners is relying on the top search result when searching for capital, leading to a cycle of applying for the wrong loans and facing rejection or predatory lenders, according to the release.

Nav’s platform breaks this cycle by combining real-time application and lender disposition data, the release said. If a business is not approved for a loan from a Nav provider, they will receive a clear understanding of why and can explore other options that may be a better fit.

“Our goal is to transform these challenging moments into positive steppingstones towards financial success,” Komma said in the release.

PYMNTS Intelligence has found that small and medium-sized businesses (SMBs) are finding it challenging to secure the financing they need to survive.

Only 47% of SMBs with annual revenues of $10 million or less had access to business or personal financing as of July 2023, according to “What’s Next in Credit: Why SMBs Prefer Corporate Credit Cards for Short-Term Financing,” a PYMNTS Intelligence and Cross River collaboration.