Business Loan Declined? Here’s What It Actually Means (And What to Do Next)
Last updated: 14 April 2025
Getting a “declined” from a lender can feel like a punch in the gut.
Whether you were counting on that cash to order stock, upgrade equipment, or simply stay afloat — it stings. But here’s the truth most brokers and banks won’t tell you: being declined doesn’t mean you’re not fundable. It just means you didn’t match that lender’s box. And now, your next move matters more than ever.
Why Business Loans Get Declined (Even When You Think You’re Eligible)
Lenders assess applications based on risk, not just need. So even if you’re a hardworking, profitable business owner, you can still get a “no” because of:
🔸 1. Low or Inconsistent Cash Flow
Many lenders want to see at least $10K/month in turnover and stability across 3–6 months.
🔸 2. Time Trading
Less than 6–12 months in business? Some lenders simply won’t look past that — even if you’re growing fast.
🔸 3. Defaults or Credit History
A few missed payments or a past ATO debt can flag your file, especially if your personal credit score is under 500.
🔸 4. Industry Risk
Hospitality, construction, and retail often face stricter credit policies — especially if seasonal.
🔸 5. Incomplete Documentation
Missing bank statements or unclear ABN activity? Lenders won’t chase you — they’ll just move on.
✅ What to Do Immediately After a Rejection
1. Don’t Reapply Blindly
Applying again without knowing why you were declined can hurt your credit score and narrow your lender options.
2. Get a Broker Who Actually Knows the Lender Landscape
Different lenders have different appetites. Some are open to new businesses, low-docs, or even bad credit — but you won’t find them easily online.
3. Get Your Bank Statements & Credit File Reviewed (Properly)
A broker like myself can review your actual lender report, spot what triggered the decline, and find a better match — often within hours.
🧭 Real Talk: What Lenders Don’t Usually Tell You
✔ Most declines aren’t personal — they’re algorithmic
✔ Some lenders only work with brokers and don’t advertise to the public
✔ You could be eligible right now — just not with the lender you tried first
🔄 Can You Still Get Approved?
In most cases: yes. I’ve helped business owners get funding after being declined by major banks, fintech lenders, and even other brokers.
Sometimes it’s just about:
Restructuring your application
Choosing a lender who actually works in your industry
Using a “low-doc” or “no-doc” option that doesn’t require full financials
👣 The Next Step (That Won’t Cost You Anything)
You don’t need to apply again blindly or wait months.
If you’re not sure what went wrong — or just want a second opinion — I’m here to help.
No sales pitch. No pressure. Just clarity.
💬 Ready When You Are
If your business loan was declined recently, let’s unpack what happened — and quietly work out the smartest path forward.
📩 Reach out with a quick message, or just ask me a question. I’ll respond personally.
Kind regards,
Michael Pajar
Business & Equipment Finance Broker
www.caseyassetfinance.com.au
