Business loan declined: applying as a sole trader
You trade as a sole trader, not a Ltd company. The FundBiz enquiry form is for limited companies, LLPs and partnerships with four or more partners.
Why the FundBiz enquiry form is for limited companies
FundBiz is not a lender. Its enquiry form is for limited companies, LLPs and partnerships with four or more partners, and it doesn't take sole-trader enquiries. So this isn't a credit decline at all: it is a mismatch with the form, and the answer is either to change structure or to use a route built for sole traders.
Your two practical options
The first option is to incorporate. Talk to your accountant about whether becoming a limited company suits your business, bearing in mind that most lenders want to see the new company trade for a period before they will lend, so a freshly incorporated shell carrying personal history isn't yet a limited-company applicant in underwriting terms. The second option is to apply directly to sole-trader-friendly lenders. Several lenders do accept sole traders for working capital and for asset finance, where the equipment is the security regardless of structure.
If you incorporate
A new limited company starts with a thin credit file of its own. The thin-file guide and the sub-12-month guide cover what lenders look for while that history builds.
Not for
Sole traders who incorporated very recently; a 6-week-old Ltd shell with personal trading history isn't a Ltd applicant from underwriting's perspective.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. We pass your enquiry to a business finance broker, who will contact you about your options. For limited companies, LLPs and partnerships with four or more partners.
Send an enquiry →Last updated: .