A declined application is not the end of the road. The majority of rejections come down to a handful of recurring issues, most of which can be addressed before you reapply.
Insufficient trading history
New companies or those with fewer than six months of clear trading records are harder to assess. If this applies to you, the most straightforward solution is time — continuing to trade and build a track record. In the meantime, keeping your accounts tidy and your bank statements clean means you will be in a strong position when you do reapply.
Affordability concerns
If the repayments on the facility you have applied for would represent too high a proportion of your monthly revenue, a lender may decline or offer a smaller amount. Applying for a sum you can genuinely service — rather than the maximum available — often results in a faster, cleaner decision. Consider whether a revolving facility like Credicorp Flex, which lets you draw only what you need, might be a better fit than a fixed lump-sum loan.
Adverse credit on the company
County Court Judgements (CCJs), defaults, or late-payment markers against the company can result in a decline. Some lenders will still consider applications with historic adverse credit if it has been satisfied and time has passed. Check your company's credit file via a reference agency before applying so there are no surprises.
Incomplete or inconsistent information
Applications that contain gaps, figures that do not match filed accounts, or missing documents are often declined simply because the lender cannot complete their assessment. Taking thirty minutes to review your application before submitting — and attaching all requested documents at the outset — removes a common avoidable obstacle.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What lenders look at when you apply, How Open Banking speeds up an application.