Declined by the bank: what to do next

Being knocked back by your bank is deflating, especially if you have banked with them for years. But banks run some of the narrowest criteria in business lending, and a decline often says more about their rules than about your business.

Step one: find out why

Ask the bank for the reasons. Common ones include:

• Less than two years of trading.
• No property security, or not enough equity.
• Financial statements or tax returns that are late or show a loss.
• An ATO debt or payment plan.
• Defaults, late payments or too many recent credit enquiries.
• The industry, which some banks treat as higher risk.

Knowing the reason tells you whether to fix something, wait or look elsewhere.

Step two: fix what you can

Some reasons can be addressed quickly. Lodging overdue returns, bringing BAS up to date, settling a small default or reducing other debts can change an answer. Others, like trading history, only change with time.

Prefer to talk it through? Start with the 60-second enquiry so the first call is about options, not paperwork. No credit check at this stage.

Step three: consider different criteria

Non-bank lenders often assess differently:

Bank concern	How a non-bank lender may assess it
Short trading history	Recent bank statements, or property security
No financial statements	Low doc lending on statements and BAS
Credit marks	Case-by-case review, with property weighing heavily
Tax debt	Considered case by case, sometimes cleared by the loan
Needs a valuation	Property-secured loans we arrange need no valuation

The Reserve Bank has noted that about one in five small businesses report difficulty getting finance, and that non-bank lenders have grown their share of small business lending. You are not alone, and there are options.

What not to do

Do not fire off applications to many lenders at once. Each can add an enquiry to your credit file, which makes the next lender more cautious. A single enquiry with us runs no credit check at all.

Read more in why banks decline small business loans and bank vs non-bank lenders.

Key takeaways

• Ask the bank for the reasons
• Common causes: short history, no security, late financials, tax debt
• Non-bank lenders use different criteria
• Avoid applying everywhere at once

How the process runs

The process is built to avoid wasted time. The enquiry asks only what matters. The first call gathers what is missing. Statements are shared securely online, documents are signed electronically and any property security is prepared in parallel. Straightforward files can be approved within the hour, and funds can land within 24 hours once everything is signed. More complex files take a little longer, and you will be told why. Where a step is waiting on someone else, such as a co-owner’s signature, we will tell you so it can be chased.

Is funding the right answer here?

Not every cash problem is a funding problem. Sometimes the better fix is a conversation with a supplier, a payment plan with the ATO, chasing an overdue invoice or adjusting prices. Funding earns its place when it solves a timing gap or unlocks an opportunity worth more than its cost. We will tell you honestly which situation you are in.

Before you send the enquiry

A short checklist before you send the enquiry. None of it takes long, and together it heads off the most common causes of delay:

• Know the amount you need and what it will pay for.
• Check your recent bank statements so nothing in them surprises you.
• Note any loans, leases or payment plans the business is carrying.
• If you own property, know who is on the title and what is owed.
• Make sure every director or co-owner knows you are applying.

A quick word on the enquiry form

The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.

Take the next step

To see what is available for your business, complete the 60-second enquiry. It is free, there is no credit check and it goes to one team, not a lead marketplace. Please be precise with the amount, turnover and credit history. Those answers shape everything that follows, and getting them right is the single best way to get a fast, useful answer.