Business loan declined because of an IVA
An Individual Voluntary Arrangement is a formal, legally binding agreement to repay personal debts over a fixed term, usually five to six years, supervised by a licensed insolvency practitioner. It is a personal arrangement, not a company one, so a limited company can keep trading; but the IVA is recorded on the Individual Insolvency Register and on the director's credit file.
Why this triggers a decline
Most UK SMB lending needs a personal guarantee from a director, so an undischarged IVA on the guaranteeing director is a strong decline signal: the director's personal covenant is what backs the facility. IVA terms also usually bar taking on new credit above £500 without the supervisor's consent, which by itself blocks a standard unsecured application.
Alternatives that work
- Asset finance secured on the equipment itself
- Invoice finance against the debtor book
- Merchant cash advance against card takings
Lenders we route to
- Specialist post-decline lenders that assess case-by-case with the IVA disclosed to the supervisor
- Asset finance providers where the equipment is the security
- Invoice finance and MCA funders that underwrite the business asset rather than the director's personal covenant
What to do first
- Tell your insolvency practitioner before you apply: taking on credit over £500 without their consent can breach the IVA.
- Ask whether a secured or asset-backed facility, where the security is a business asset rather than your personal guarantee, fits within the arrangement.
- Pull all three credit files and confirm the IVA status is reported accurately; a completed IVA still shows for six years from its start date.
Not for
An IVA that has failed or is at risk of termination, an application that would breach the arrangement without the supervisor's consent, or a company already subject to winding-up activity. This is information, not debt or insolvency advice; speak to your insolvency practitioner or a debt adviser.
Run the matcher
Tell us your sector, ticket size and trading time. We score each panel lender and surface the ones most likely to approve given the decline reason above.
Open matcher →Last reviewed: 2026-07-20.