Securing finance can be the key to unlocking growth for your business — whether that means hiring new staff, upgrading equipment, or investing in stock. But not every application gets approved. Understanding the most common decline reasons can help you prepare better and improve your chances next time.
At BusinessLoans.ie, we see patterns every week. Here are the top five reasons lenders say no — and where there may still be options.
1. Missed Payments in Bank Statements
Lenders look at your recent bank activity as a snapshot of how your business is managed. Regular missed payments, unpaid direct debits, or returned cheques raise red flags. If they see affordability issues in your statements, they worry the loan could also fall into arrears.
What you can do:
Keep accounts clean in the months before applying. If there are genuine one-off reasons for a missed payment (e.g. a late-paying customer), explain it upfront. Some flexible products, such as revenue-based finance, can still work for businesses with strong sales but uneven cash flow.
2. Too Much Debt Already
Sometimes businesses simply have no more room for unsecured credit. Even if repayments are up to date, lenders may judge that taking on additional debt would stretch affordability too far.
What you can do:
Alternative structures can help. Invoice finance allows you to release cash tied up in unpaid invoices, while a sale & leaseback of equipment can free up working capital without adding another traditional loan on the balance sheet.
3. No Tax Clearance Certificate
For unsecured business loans, a valid tax clearance certificate is almost always required. Without it, most lenders will not proceed.
What you can do:
Get up to date with Revenue before applying. If that’s not immediately possible, some revenue-based finance providers can be more forgiving and may still provide short-term funding based on your card or online sales performance.
4. Missing Documentation
An otherwise strong business can be delayed or declined simply because the right documents weren’t provided. Missing bank statements, out-of-date management accounts, or being close to a Companies Registration Office filing deadline can all slow down approvals.
What you can do:
Have at least six months’ bank statements and your most recent accounts ready before applying. If accounts are not yet filed, draft management accounts prepared by your accountant can often help move things forward.
5. Limited Trading History
Most lenders want to see at least one full year of filed accounts. Startups and very young businesses often struggle here.
What you can do:
Revenue-based finance can sometimes work from as little as three months of trading, provided you can show consistent turnover. For other options, consider personal savings, equity investment, or government-backed startup supports until you build a longer track record.
Final Word
A decline isn’t the end of the road — it’s feedback. By understanding what lenders look for, you can prepare smarter and position your business for success. At BusinessLoans.ie, we help clients every day find the right funding solution, even when traditional options aren’t available.
Call the BusinessLoans.ie team on 01 55 636 55 or APPLY HERE.
