When a lending decision comes back as a decline, it means our assessment found that the application did not meet our current criteria at this time. The reasons vary, but they fall into a small number of categories that are worth understanding before you consider next steps.
Common reasons for a declined application
- Trading history too short. We typically look for at least twelve months of filed or management accounts. Very early-stage companies may not yet have enough financial track record for us to assess repayment capacity reliably.
- Adverse credit data on the company. County Court Judgements (CCJs), outstanding defaults, or a history of late payment on existing credit facilities can reduce the confidence our model places in future repayment.
- Affordability. If the company's recent revenue or profit does not comfortably support the proposed repayments alongside existing obligations, the application is likely to be declined on affordability grounds.
- Industry or purpose outside our appetite. We do not lend into every sector, and some borrowing purposes fall outside our current underwriting appetite.
- Information gaps. Incomplete or inconsistent information in the application — for example figures that do not reconcile with filed accounts — can trigger a decline rather than a delay.
What the decision letter tells you
Our decision communication will indicate the broad category of the reason for decline. We are not always able to share every data point used — particularly where it relates to third-party bureau data — but we will tell you which bureau we used so you can obtain your own report and check for errors.
What to do if you think the decision is wrong
If you believe the decision was based on inaccurate data — for example a CCJ that was satisfied and incorrectly recorded, or accounts that were not matched to the correct company — you can contact us to raise a query. See the article on appealing a decision for how that process works.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Can I reapply after a decline?, How do I appeal a lending decision?.