Data from various financial institutions and industry reports highlight a stark reality: loan rejection rates have been climbing steadily. Small businesses, startups, and even individuals with previously stable credit histories are finding it increasingly difficult to secure the financing they need. According to a recent study, nearly 30% of all small business loan applications are being denied, a significant jump from previous years.

Tighter Regulatory Environment: Understand, banks need to lend money and make loans.  It is their business.  But, post-2008 financial crisis regulations have led to stricter lending standards. Banks are now required to maintain higher capital reserves and face increased scrutiny over the quality of loans they issue. This has made them more cautious, leading to more stringent credit requirements.