Business loan declined: thin file
Insufficient credit history for the lender to underwrite. Common for newer Ltd companies, recent incorporations, or businesses without prior borrowing.
Why this triggers a decline
Mainstream credit models need a baseline of repayment history. New companies under 12 months trading often fall under "no opinion" rather than a negative score.
Alternatives that work
- British Business Bank Start Up Loan (£500 to £25k, government backed)
- iwoca (lower trading-time threshold)
- Director-guaranteed personal credit (last resort)
Lenders that may consider this
- Start Up Loans Company
- iwoca (12+ months trading)
- Capify (12+ months trading, per its own criteria)
What to do first
- Open a business bank account in the company name and run trading through it for 6+ months.
- Apply for a small business credit card and use it actively to build history.
- File first set of accounts on time at Companies House.
Not for
Pre-revenue businesses (different products apply); pre-incorporation founders.
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.
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