6 March 2017

Previously Declined Lending

Previously Declined Lending – How We Can Do It

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Many of our clients come to us after having been declined elsewhere. We have even had clients referred to us by leading banks such as Natwest, Barclays, Lloyds and Handelsbanken because they have been unable to lend.

Let’s Get One Thing Clear

Just because one lender has said no to you does not mean that every lender will. The main reasons why lenders decline applications have nothing to do with you. Sometimes:

  • You weren’t the right investment for them in the first place. The lender either has enough of that type of borrowing already or has made a decision to lend their money in a different sector
  • Every lender has a different appreciation of risk. What one lender sees as too much risk another will consider to be their bread and butter deal
  • Lenders are typically poor at communicating what they want to lend to and what they don’t. This produces inaccurate expectations and leaves clients disappointed when they are turned down.

It is rarely you or your proposal that is problematic.

A client who has come to us having been declined elsewhere doesn’t worry us. We can work with you provided you tell us everything, that way we can usually secure the result you want.

There are always questions that borrowers have after they have been declined somewhere; however, let’s dispel one myth straight away; there are far more options for borrowing than just a high street lender or a payday loan provider. In between those extremes are a myriad of viable alternatives that are only available via authorised intermediaries such as ourselves and many of them will be keen to lend to you.

Cost & Options

Borrowing for a commercial purpose is done because there is a tangible benefit to be had, a profit to be made, a cost to be saved. Any decision on borrowing commercially needs to be made with open eyes and an appreciation of everything that comes from borrowing.

There is not a borrower out there who actually wants to borrow. People borrow because they want what the money will bring them. It cannot be just about cost and you need to realise that.

Just because someone has said no to you doesn’t necessarily mean that finance is going to be expensive; however, the cost of finance will be linked to the perceived risk.

The rule is that the greater the perception of risk the lender has, the higher the cost will be. Just don’t make a decision on cost alone; remember why you wanted to borrow in the first place. Remember also that not all lenders see risk the same; what one doesn’t like, another will.

Let Us Help

If you want help finding a solution, please get in touch. We genuinely do things differently and we don’t charge anything for you to come and find out what is possible.

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