by Alison Jobson | May 6, 2026
If you’ve ever had a finance application declined, you’re not alone. Research from the National Association of Finance Brokers (NACFB) found that more than a quarter of businesses had already been turned down by a lender before approaching a broker.
A no doesn’t always mean the deal isn’t viable or that you won’t secure finance. Often, a rejection is due to how the application has been presented, structured, or interpreted.
In this article, we explain the common reasons for finance applications being declined and how a broker, such as ASC, can change the outcome.
5 most common reasons finance applications are declined
1. The deal doesn’t fit the lender’s criteria
Every lender has a particular focus. Some favour low-risk, straightforward deals, while others specialise in specific types of finance or scenarios, such as development finance, bridging finance, or start-up businesses.
If an application is the wrong fit, it can be declined quickly, even if another lender would have accepted it.
2. Poor presentation of the application
Lenders assess risk as well as the figures. If an application lacks clarity, supporting documentation, or a strong narrative, it can raise red flags.
For example:
- Missing financials or unclear cash flow
- Limited explanation of the borrower’s experience
Even a strong deal can get rejected if it isn’t presented properly.
3. Perceived risk is too high
Sometimes, even if a deal looks sound, it may still appear too risky from a lender’s perspective. This may be due to:
- Property type or location
- Complex ownership structures
Lenders are inherently cautious, so anything that raises concerns may result in a decline.
4. Previous credit issues
Personal or business credit history issues can make a deal high-risk for a lender. However, not all lenders assess credit history the same way. What deters one lender may not be a concern for another.
5. The deal hasn’t been structured correctly
Frequently, it’s not the deal itself that’s the issue, but it’s how it’s been presented to the lender.
For example:
- The wrong type of finance has been applied for
- The loan term doesn’t align with the borrower’s strategy
- The repayment plan doesn’t stack up
If it doesn’t make sense or looks too risky, the lender will reject it.
How a broker turns things around
Working with an experienced commercial finance broker can make a real difference when making a finance application. Here’s how.
1. Matching the deal to the right lender
A broker understands which lenders are most likely to support a specific deal. They know who is flexible, who specialises in certain sectors, and who is actively lending in the current market.
Rather than adopting a one-size-fits-all approach, they target the right lender for the deal. This alone can transform the outcome.
2. Reframing and strengthening the application
A broker doesn’t just pass on information; they shape it into a compelling application.
This might include:
- Presenting financials in a clearer, more persuasive way
- Highlighting strengths the lender may miss
- Addressing potential concerns before they become objections
A broker’s role is to present the full story behind the numbers so the lender can make a confident and informed decision.
3. Structuring the deal differently
With expert knowledge of the industry, a broker has the insight to determine whether a different approach would be more effective.
For example:
- Using bridging finance as a short-term solution before refinancing
- Adjusting the loan amount or term
- Bringing in additional security or a guarantor
These strategic tweaks can turn a decline into an approval.
4. Access to a wider panel of lenders
High-street banks are only one segment of the lending market. Brokers have access to a wide range of specialist lenders, many of whom are more flexible, open to complex deals, and available only via a broker.
Using a broker opens up more options, improving your chance of success.
5. Managing the process from start to finish
Finally, a good broker handles the entire process for you, managing communication with lenders and resolving any issues that arise to keep the deal on track.
A decline isn’t the end of the road
Being turned down for finance can feel hopeless. However, with the right guidance, many declined applications can be reworked, repositioned, and successfully funded.
At ASC, we specialise in looking beyond the initial “no” to find a way forward. We know that in many cases, it’s not that the deal doesn’t work; it just hasn’t been approached in the right way yet.
If your finance application has been rejected, or you’ve got plans that need financing, please get in touch and let’s secure a successful outcome.
by Kate | Nov 3, 2025
Accessing finance can be difficult, and traditional borrowing options like bank loans or overdrafts aren’t always straightforward. Sometimes clients ask us, “Can I use my pension to fund my business?”
The short answer is yes, but this is a complex area of finance and not a decision to be taken lightly.
How can pensions be used to fund a business?
Pension-led funding allows business owners or directors to finance their business using their pension funds through either of the following two types of pension:
- Small self-administered schemes (SSAS)An SSAS is a type of occupational pension scheme usually established by company directors. It offers more flexibility than standard pensions and allows for specific investments, including in your own business. For example, an SSAS can lend money back to the sponsoring employer or purchase commercial property that your business then rents.
- Self-invested personal pensions (SIPPs)A SIPP is an individual pension plan that provides you with control over how your funds are invested. Although you typically cannot lend money directly to your own company through a SIPP, you can use it to purchase commercial property and lease it back to your business.
Pension-led funding options
The funding options available via your pension include the following:
Commercial loan
Your business can take out a commercial loan from your pension. This option is only possible with an SSAS and with the approval of the trustee or trustees. Using this method, the business borrows money from the pension and repays it with interest. You can utilise the borrowed funds for your business in any way you choose.
Purchase of intellectual property
The pension fund (either an SSAS or SIPPs) can buy a business’s intellectual property (such as patents, trademarks, designs, or copyrights) and lease it back to the business at a commercial rate. If your business expands, the value of your intellectual property will increase, meaning your pension pot will grow.
Purchase of commercial property
A SIPP or SSAS can purchase commercial property. If you don’t already own your business premises, you can use your pension to help buy a property for your business to operate from. Alternatively, if you already own your business premises, your pension can buy the property and then lease it back to your business.
What are the benefits of using a pension to fund your business?
Using a pension to fund your business can be attractive for several reasons:
- Access to capital – your pension could contain substantial funds that can be released to support business growth without relying on banks.
- Keep control – instead of handing over equity to external investors, you can finance your business independently.
- Tax advantages – pensions enjoy generous tax reliefs, and some pension-led arrangements permit tax-efficient investment into your business.
- Property ownership – purchasing commercial premises through your pension means your business pays rent to your pension instead of an external landlord, enhancing your retirement savings.
What are the risks of using a pension to fund your business?
Although the idea might seem attractive, there are important factors to consider:
- Risk to retirement savings – pensions are meant to offer financial security in later life. Using your pension funds for business links your retirement income to your company’s success. If the business encounters difficulties, you may lose both your capital and your pension.
- Complex rules – pensions are heavily regulated. Not all investments are allowed, and violating HMRC rules can lead to hefty tax penalties.
- Illiquidity – investing pension funds in property or your own business might make your pension less flexible and harder to access.
- Professional advice is essential – these arrangements are complex, and errors can be costly. You’ll need guidance from regulated financial advisers and pension specialists.
When might it be suitable to use a pension to fund your business?
Using your pension to finance your business might be appropriate if:
- You’ve accumulated significant pension savings and wish to diversify how they’re invested.
- You’re seeking to purchase or rent commercial premises for your business.
- You’re comfortable with higher levels of risk and understand the potential impact on your retirement.
- You’re working with professional advisers who can ensure compliance with all pension rules.
It is generally not appropriate if you have limited pension savings, are nearing retirement, or cannot afford to take on extra risk.
Final thoughts
Although you can use your pension to fund your business, it’s a decision that requires careful consideration. While there are potential advantages, such as tax benefits and direct access to capital, the risks to your retirement savings can be considerable.
Before choosing this route, consult a professional adviser and consider all options. In many cases, refinancing, commercial loans, or other funding choices might provide a safer and more flexible solution.
