When your bank says no: what to do next

A practical guide for businesses turned down by traditional banks, highlighting alternative funding routes, how brokers like Evolve step in and cases that we’ve seen. 

When your bank says no: what to do next

Hearing  the word ‘no’ from your bank can be tough. We’ve worked with several businesses recently who have either been turned down for new funding or told their existing facility is coming to an end and can’t be renewed. For businesses that have banked in the same place for years, it feels personal.  However the reality is that banks have their own reasons for stepping back. 

Why banks say no

Banks work to strict rules. Their credit appetite can shift quickly when market conditions change or if a particular sector is seen as higher risk. Construction, recruitment, transport and hospitality are all areas where we’ve seen banks reduce their exposure. Sometimes the issue is profitability or a short trading history. Other times, it’s nothing to do with the health of the business.  The bank simply doesn’t want to fund that type of client anymore. 

What it means for your business

Being declined or having a facility withdrawn can cause real disruption. It can leave working capital stretched and growth plans on hold. For businesses trading on thin margins, even a small delay in funding can affect payroll, supplier payments or the ability to take on new contracts. 

The good news – banks aren’t the only option

Independent funders  are often more open to businesses that don’t fit a bank’s criteria. They can move more quickly, structure facilities around your specific needs and focus more on trading potential than tick-box ratios. In some cases, they’ll even provide larger facilities than the banks.

Here are some of the routes that businesses in this position can consider:

• Invoice finance – advancing cash against unpaid invoices to smooth working capital
• Asset-based lending – using stock, plant or machinery to raise funds
• Unsecured business loans – short to medium-term loans with fast turnaround
• Trade finance or supply chain finance – supporting importers and exporters with flexible payment terms
• Cashflow loans – bridging gaps when seasonal swings or contract delays put pressure on liquidity

Examples we’ve seen

We recently worked with a Midlands recruitment firm which was told by their bank that their facility would not be renewed. Despite strong trading, the sector was no longer one the bank wanted to fund. Within weeks we arranged an unsecured loan with an independent lender that gave the business the breathing space to meet payroll and pursue new contracts.

Another case involved a manufacturer facing rapid growth. Its bank declined a request for an increase due to internal policy limits. We stepped in and secured a £1 million CHOCCs facility through an alternative lender, giving the firm the headroom to take on a major new order. 

Why work with a broker?

When banks say no, many owners assume every door is shut. In truth, there are dozens of active lenders in the UK with very different appetites. The challenge is knowing who to approach, how to pitch your business and how to compare terms. A broker’s role is to do that heavy lifting.

At Evolve, every day we speak to lenders across the market. We know their appetite, their strengths and their quirks. That means we can put your business in front of the right funders, saving you weeks of dead ends and missed calls. And because we work with clients across sectors and deal sizes, we know how to structure a facility that meets the demands of growth, not just the minimum bank tick-box. 

Next steps

If your bank has declined you or ended your facility, don’t panic. There are other ways forward.  In many cases, businesses come out stronger with a partner that actually wants to back their plans. Talk to someone who knows the market and can guide you to the right deal.

We’re proud of the work we do and the partnerships we’ve built with both lenders and clients. It’s how we’ve been able to deliver funding where banks could not and why we were recently named NACFB Invoice Finance Broker of the Year.

If you’d like to know more, please get in touch with Stef Radymski  or Nilima Begum at Evolve Business Finance for a quick chat.