Common reasons a bank declines a viable business
- Limited trading history
- Seasonal or non-standard income
- Existing bank debt already at capacity
- A deal that doesn’t fit a standard product
- Timing a bank’s process can’t match
- A security type outside a bank’s appetite
Why a decline is not the end of the matter
A bank’s decline reflects that bank’s own criteria and risk appetite at that time. It is not an independent judgement on the business or on the merits of the deal, and a different lender assessing on different criteria can reach a different view.
What a property-backed lender assesses differently
Assessment is centred on the property security offered, the credibility of the business purpose, and the repayment or exit position. Each transaction is considered deal by deal rather than against a standardised product, so the shape of the security and the exit matters more than a fixed checklist.
What information to have ready
- Funding purpose, amount and timing
- Business profile and trading history
- Financial information and ownership details
- The proposed security and supporting documents
- The intended repayment or exit position
What happens next
Applications are assessed on the business purpose, borrower information, repayment position, proposed security and supporting documents before any opportunity is considered for presentation to registered lenders. Terms are confirmed in writing during assessment, and nothing is published or presented before that work is complete.