LOAN DECLINE APPEAL PACK: LETTER TEMPLATE + CHECKLIST
FundBiz (fundbiz.co.uk)

Two documents: a letter asking a lender for the specific decline reason
and a reconsideration, and a checklist to work through before you send
it, or reapply anywhere else. General information, not financial advice.

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PART 1: THE APPEAL LETTER

[Your name]
[Company name], company number [number]
[Address]
[Date]

[Lender name]
[Lender address or the email address on your decline notice]

Dear [name or "Business Lending Team"],

Re: application [reference], declined on [date]

Thank you for considering our application for [amount] over [term]. I
am writing to ask for two things.

First, please confirm the specific reason or reasons the application
was declined. If a credit reference agency was used in the decision,
please tell me which one, so I can check the underlying data is
accurate.

Second, I would like to ask you to reconsider, because: [choose what
applies and evidence it]

- The information the decision was based on was incomplete or has
  changed: [e.g. the filed accounts predate a strong recent period;
  attach up-to-date management accounts]
- A specific issue on the file has been resolved: [e.g. the CCJ dated
  [date] was satisfied on [date], certificate attached; the overdue
  confirmation statement was filed on [date]]
- The affordability picture is stronger than the headline numbers
  suggest: [attach a 12-month cash flow forecast showing repayment
  cover, and note one-off costs that depressed last year's profit]

I have attached: [list: management accounts, cash flow forecast,
satisfied CCJ certificate, bank statements, updated business plan].

If the facility as applied for is not something you can approve, I
would welcome a conversation about what you could approve: a smaller
amount, a shorter term, or a secured structure.

Yours sincerely,
[Name], [role]

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PART 2: BEFORE YOU SEND IT, OR REAPPLY ANYWHERE: THE CHECKLIST

[ ] 1. Get the decline reason in writing. You cannot fix what you
       cannot name.
[ ] 2. Check the company's credit file, and the file of every director
       who gave a personal guarantee. Dispute anything inaccurate with
       the credit reference agency.
[ ] 3. Companies House housekeeping: accounts and confirmation
       statement filed on time, correct SIC code, no undischarged
       charges that should have been satisfied.
[ ] 4. Satisfy or arrange payment on CCJs and defaults where possible,
       and keep the paperwork.
[ ] 5. Prepare management accounts no older than 3 months, plus your
       last filed accounts.
[ ] 6. Build a 12-month cash flow forecast that shows the repayment
       line being covered every month, including VAT and Corporation
       Tax months.
[ ] 7. Be ready to explain, in one paragraph each: what the money is
       for, how it comes back, and what happens if sales dip 20%.
[ ] 8. Check you applied for the right product. Declines are often
       product mismatches: equipment need vs unsecured loan, seasonal
       gap vs long-term loan.
[ ] 9. Space out applications. A burst of hard searches in a short
       window lowers approval odds with the next lender.
[ ] 10. Consider whether a specialist lender fits the decline reason
        better than reapplying to a mainstream bank with the same
        facts.

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By Adam Parker. FundBiz is owned and operated by Best Business Loans
Ltd, directed by Oliver Mackman. General information, not financial
advice. Full page, FAQs and downloadable PDF: fundbiz.co.uk/templates/loan-decline-appeal-pack/