If your business-loan application has just been declined, this is the practical, step-by-step guide to what to do next. A decline from Credicorp is meant to be honest and specific, not a closed door. Work through these steps in order: understand the reason, exercise your right to have a person review the decision, strengthen the things that held the application back, and reapply when the company is in a stronger position — or decide, calmly, that now is not the time to borrow at all.
Because Credicorp lends to your company and takes no personal guarantee, a decline does not put your personal assets at risk and does not record a default against you personally. It is a judgement about this specific borrowing for the company right now — not about you.
Step by step: what to do after a decline
- Read the reason we gave you. Every Credicorp decline comes with 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. Re-read the decline message and note the main factor — most often it is affordability, a signal on the company's bank activity, or something on the company's business credit file. If the reason is not clear to you, get in touch and ask us to explain it.
- Ask a person to review the decision. If the decision was reached by automated means, you have the right under UK GDPR Article 22 to ask that a member of our team re-examines it. This right is about how the decision was made about your data, and it is yours regardless of the fact that the lending itself is to a company. Tell us anything the application did not capture — a large invoice about to be paid, a one-off dip in the account, a recent change in trading — and a human will look again. Read can I ask for a human to review my decision for exactly how to request it.
- Check the company's bank activity. Returned payments, an account run consistently at its limit, or very thin recent activity all count against an application. Look at the last few months of the business account through the eyes of a lender. Clear any returned Direct Debits, leave a little headroom rather than running to the limit, and let a clean stretch of trading build before you try again.
- Look at the company's business credit file. Adverse markers against the company — picked up through business credit reference agencies — can weigh heavily. You can check what the agencies hold on your company and, where something is wrong or out of date, ask for it to be corrected. Our guide to how to improve your business credit score sets out the practical moves that help over time.
- Make sure we could confirm everything. Sometimes an application is declined simply because we could not verify the company, the director's identity, or the bank activity. Check your Companies House record is current and accurate, have a clear photo ID ready, and connect the business bank by read-only Open Banking — the quickest route — or upload six months of business bank statements. See what documents you need to apply so nothing is missing next time.
- Consider asking for a smaller amount. Affordability is the most common reason a company is declined for the amount requested, and a smaller loan that sits comfortably within normal trading is often a yes where a larger one was a no. Decide the figure the company can clearly afford to repay and apply for that instead. You can always check current amounts, terms and the cost of borrowing first on our business loans page.
- Wait for the reapply cooldown, then 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, and it gives you time to act on the steps above. When the cooldown has passed and the company is in a stronger position, begin a fresh application. Read the reapply cooldown explained for the timing.
- Decide whether now is the right time to borrow at all. 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 the business is under real financial pressure, free independent help may serve you better than reapplying. 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 until the company is in a stronger place.
What a decline does — and does not — mean
A decline means that, on the information available, we did not think this loan was affordable or appropriate for your company right now. It does not mean you can never borrow from Credicorp, and it does not affect you personally. We would rather decline kindly and clearly than leave you guessing, which is why the reason we give is specific enough to act on.
Where a decision was made solely by automated means and it significantly affects you, UK GDPR Article 22 gives you the right not to be subject to it without a person looking again. You can ask us to re-examine the application, add your side of the story, and reconsider. Ask, explain, and a human will review it.
How we are regulated
Credicorp lends to UK limited companies and LLPs for business purposes. A Business Loan is exempt from FCA consumer-credit regulation under Article 60B of the FSMA Regulated Activities Order 2001, the company is the borrower, and we take no personal guarantee. That exemption does not change your protections under data law or your right to a fair process — including the right to human review above — it simply means the escalation route differs from a consumer loan, and the borrowing is not covered by the Financial Ombudsman Service or the FSCS. For free, independent guidance for your business at any point, Business Debtline (businessdebtline.org, 0800 197 6026) is there to help.
See also: What happens after you sign the Business Loan Agreement, Applying as a newly incorporated company, The Business Purpose Declaration: what you're signing.