Unsuccessful Lending Applications and Lending Declines


Banks are committed to supporting smaller businesses to do what they do best – drive economic growth and create jobs. Banks are agreeing between 80 and 85 per cent of the lending applications made by small and medium-sized firms.

However, banks have an obligation to lend responsibly and there are times when a proposal does not meet the bank’s lending criteria, for example on grounds of affordability or past credit history. In some cases the bank may consider that the business is best suited to a type of finance that it does not provide. In other cases the bank may make an offer that is different to the amount and type of finance applied for, which the business chooses not to accept.

If your bank lending application has been unsuccessful, there are several options available.

If you have made an unsuccessful application for finance from your bank –  what are your options?

1. Appeal

If you’ve applied to your bank for any finance for your business and you have been turned down, you can lodge an appeal on the Better Business Finance website. You need to submit this within 30 days of your original application, and you will need to meet certain eligibility conditions which are explained on the website.

The following banks are part of the appeals process: AMC, Barclays, HSBC, Lloyds Bank, Bank of Scotland, RBS, NatWest, Santander, Ulster Bank, Bank of Ireland, Danske Bank, Clydesdale Bank, Yorkshire Bank and First Trust Bank.

2. Referral to Government Designated Platforms

If a small and medium sized business makes an unsuccessful application for borrowing to a designated bank, the bank is obliged to offer the business a referral to the government designated online finance platforms, subject to eligibility. These platforms will seek to help you find a suitable finance provider that may be willing to offer the finance you need.

Download our Factsheet or read the Small and Medium Sized Business (Finance Platforms) Regulations 2015.

About the Government Designated Platforms

The Finance Platforms have produced the following summaries to tell you more about them:

Business Finance Compared connects small businesses with the finance they need to grow in a clear, transparent and independent way.

You can compare a wide range of finance options and find out how likely you are to be approved instantly, for free and with no obligation to make an application.

We have made finding the right finance for your business simple

  1. Tell us about your business and what you need, so we can match you to the right finance
  2. We will build a profile of your business, in a format which makes it easy for lenders to assess your application quickly
  3. We show you how likely you are to be approved, so you can save time and apply with confidence.

Business Finance Compared was launched in 2015 by Olly Betts who was frustrated by spending precious time applying for finance, without knowing if his applications would be approved. He felt there must be a better way.

Business Finance Compared is a trading name of Business Finance Technology Group a limited company registered in England and Wales under company number 09422433.

Business Finance Technology Group is authorised and regulated by the Financial Conduct Authority (FCA FRN 709589). Business Finance Technology Group Ltd is a credit broker, not a lender.

Start your search at www.businessfinancecompared.com

We are turning the traditional credit process on its head – we ensure lenders come to you to make you indicative offers through Funding Xchange. One quick search with Funding Xchange returns indicative offers from lenders who want to fund your business. Putting you in control of selecting lenders and progressing only if the terms offered suit you. You don’t waste hours applying to lenders not able to fund you.

We only show you indicative offers from lenders who have assessed your request and want to fund you. Lenders compete to provide the best terms – helping you save time and money.

We make the process really easy to understand. You only submit one quick application – it typically takes six minutes. And all lenders, from challenger banks to peer-to-peer and invoice finance providers, have to make indicative offers in a standardised format, so you can directly compare the details.

Visit: www.fxe.co.uk or call us on 0203 695 9206. We are here to fast track you to the right funding for your business:

  • One quick & easy funding request to access more than 80 funding options
  • See all loans available to you and you decide which lenders can contact you
  • Free to use and won’t impact your credit rating
  • Make lenders compete to fund your business and save money

Funding Xchange is an independent Limited company incorporated in England and Wales (registered number 09228134) registered office Winnington House, 2 Woodberry Grove, North Finchley, London, N12 0DR

Funding Xchange is authorised and regulated by the Financial Conduct Authority (FCA FRN 685043). Funding Xchange Ltd is a credit broker, not a lender. Funding Xchange do not charge a fee for businesses to use our services.

In the last year, Funding Options has helped firms like yours to source tens of millions of pounds in vital finance, whether for working capital, high growth, or a difficult trading patch. We’re proud to have helped businesses from the Isle of Skye to Devon, and from Northern Ireland to Norfolk, to access over 50 handpicked lenders.

Funding Options is the only platform with the highest rating of ‘Excellent’ on the independent review site TrustPilot and we have helped companies across all sectors – including builders, restaurants, lawyers, retailers, recruiters, hauliers, farmers, manufacturers and many more.

Funding Options specialise in finding finance for businesses who’ve been told ‘No’ by other funders, helping you to quickly scan the wider market and to make lenders compete to work with you. Our website www.fundingoptions.com/bank uses state-of-the-art technology to match your requirements with over 50 handpicked lenders – all backed-up by our team of experienced and friendly Business Finance Specialists who are there to help you along the journey of accessing finance.

Our process is fast and simple – our record is 7 hours from the customer’s first enquiry to the funds in their account. Funding Options is free to use and you are always in control.

Disclaimer: Funding Options helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Funding Options may receive a commission or finder’s fee for effecting such introductions.

© Funding Options Ltd · Authorised and Regulated by the Financial Conduct Authority · Reference Number 727867


3. Finding Finance Tool

If you’ve applied to your bank for any finance for your business and you have made an unsuccessful application, you could try the finding finance tool on the Better Business Finance website.

The finance finding tool brings together a wide range of finance providers across Britain, including business angels, regional funds, government schemes and banks. It’s free and easy-to-use search engine allows businesses to refine searches according to their geographic location, the industry in which they operate, the amount of finance they require, and the life stage of their business.

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