# What happens if your application is declined

*Source: https://credicorp.co.uk/support/what-happens-if-your-application-is-declined/*

Being declined is disappointing, and we will not pretend otherwise. But a no from us is meant to be honest and specific, not a closed door. This article explains what a decline actually means, the reasons it usually happens, your right to ask a person to look again, and how to reapply with a stronger application. We would rather decline kindly and clearly than leave you guessing.

## What a decline means

A decline means that, on the information available, we did not think this loan was affordable or appropriate for your company right now. It is a judgement about the company and this specific borrowing, not about you as a person. Because the loan is to the company and we take no personal guarantee, a decline does not put your personal assets at risk and does not record a default against you personally. To understand the principles behind our decisions, see [how we lend](/how-we-lend/).

## Common reasons

- **Affordability.** The company’s turnover or cash flow did not comfortably support the repayments on the amount requested. Sometimes a smaller amount would work.

- **Bank-account signals.** Returned payments, an account run consistently at its limit, or very thin recent activity can count against an application.

- **Business credit file.** Adverse markers against the company, picked up through business credit reference agencies, can weigh heavily.

- **Information we could not confirm.** If we could not verify the company, the director’s identity, or the bank activity, we may be unable to proceed.

## We will tell you why

We aim to give a clear, specific reason rather than a vague rejection, because a reason you can act on is far more useful than a polite brush-off. If anything is unclear, you can ask us.

## Your right to human review

If a decision was made by automated means, you have the right under **UK GDPR Article 22** not to be subject to a solely automated decision that significantly affects you, and to ask for a person to review it. You can request that a member of our team re-examines your application, take into account anything you want to add, and reconsider. This right is yours regardless of the fact that the lending itself is to a company; it concerns how the decision was made about your data. Ask us, explain your side, and a human will look again.

## Reapplying

You can apply again. To protect you from borrowing that is not affordable, there is usually a short cooldown before a fresh application, typically around 30 days and up to 90 in some cases. That pause is a deliberate part of responsible lending, not a punishment. It also gives you time to improve the things that led to the decline. Read [the 30 to 90 day reapply cooldown, explained](/support/reapply-cooldown-explained/) for the detail and the timing.

## What to improve before you try again

- Strengthen cash flow so repayments sit comfortably within normal trading.

- Clear any returned payments and avoid running the account at its limit.

- Address adverse markers on the company’s business credit file where you can.

- Keep your Companies House record current and accurate.

- Consider applying for a smaller amount that the company can clearly afford.

## If now is not the time to borrow

Sometimes the most useful outcome of a decline is the prompt to pause. A short-term loan is an expensive way to borrow, and if your business is under financial pressure, free independent help may serve you better. **Business Debtline** (businessdebtline.org, 0800 197 6026) and the **FSB** (fsb.org.uk) offer free guidance for businesses, and HMRC’s Time to Pay (gov.uk) can help with tax arrears. There is no shame in stepping back. When the company is in a stronger position, you can always check current amounts, terms and costs on [our business loans page](/business-loans/) and try again.

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Credicorp Limited — UK lender to limited companies (Company No. 16093826). credicorp.co.uk