There are a number of reasons why your finance application may be declined, such as:
- Poor Credit History – Missed payments, defaults, or a low credit score may make lenders hesitant.
- High Debt-to-Income Ratio – If you already have significant debt, lenders may worry about your ability to repay.
- Insufficient Income or Cash Flow – Lenders may feel your business or personal income isn’t sufficient to support the loan repayments.
- Unacceptable Asset – The asset you want to finance (e.g., used machinery or vehicles) may not meet the lender’s criteria.
- Business Risks – Lenders may see your business as high risk, especially if you have limited trading history or poor financial performance.