Funding Options When You've Been Rejected by the Bank
Rejection by a bank can feel like a dead end, especially when funds are critical to business growth. Bank declines do not necessarily indicate your project or business is unviable. The proposal often doesn't meet rigid lending criteria.
High street banks are becoming less attractive to strong businesses and property investors in today's market. Tapton Capital matches clients to lenders who assess risk differently after a bank rejects them, enabling them to secure finance.
Why Banks Say No
Finding an alternative begins with understanding why a bank declined your application.
Common reasons include:
- Strict affordability models
- Lack of trading history
- Irregular income or cash flow
- Property type or project complexity
- Tight loan-to-value limits
- Inflexible credit scoring
A bank is designed for standard, low-risk cases. In spite of real potential, anything outside the norm is often rejected.
Specialist Lending: A Practical Alternative
The approach of specialist lenders is more case-by-case. In addition to relying on automated systems, they assess the proposal's overall strength.
Specialised funding is therefore suitable for:
- Growing businesses
- Property investors and developers
- Companies with complex structures
- Time-sensitive transactions
Property and commercial finance are two of Tapton Capital's specialities.
Bridging Finance
Typically used when speed is critical, bridge finance is a short-term funding solution.
It is often used for:
- Property purchases
- Auction completions
- Chain breaks
- Temporary cash flow needs
Instead of focusing solely on income, bridging lenders focus on asset value and exit strategies.
Asset Finance
A business can acquire equipment, vehicles, or machinery using asset finance without having to pay large upfront expenses.
The asset provides security, so approval is often easier than unsecured bank lending.
Operational growth is especially suited to this option.
Working Capital Finance
Cash flow solutions support day-to-day operations rather than long-term investments.
These facilities help businesses:
- Manage supplier payments
- Cover payroll
- Handle seasonal fluctuations
- Support growth periods
Overdrafts are often less flexible than working capital finance.
Development and Refurbishment Finance
It is common for developers to face rejections from banks as a result of planning complexity or construction risk.
Development and refurbishment finance focuses on:
- Project viability
- Build costs and timelines
- End values and exits
These lenders understand development risk in a way high street banks often do not.
Mezzanine and Structured Finance
An alternative to senior funding is mezzanine financing.
Typically, this type of funding is used in the following areas:
- Development projects
- Joint ventures
- Capital-intensive schemes
Projects can proceed without excessive equity dilution.
What to Do After a Bank Rejection
It is important to treat a bank rejection as information, not as a failure.
Next steps include:
- Understanding the reason for decline
- Reassessing funding structure
- Strengthening the exit strategy
- Considering specialist lenders
- Seeking expert advice
Reapplying to the same lender without any changes often results in rejection.
How Tapton Capital Helps After a Bank Decline
Tapton Capital specialises in funding solutions beyond traditional banking.
Identifying Reasons
Identifying why the bank declined
Restructuring Proposals
Restructuring proposals to suit specialist lenders
Quick Access
Accessing alternative funding options quickly
Process Management
Managing the process from enquiry to completion
Clear Guidance
Providing clear guidance throughout
Our focus is securing funding that works in the real world.
Conclusions
Business or investment strength is not determined by a bank rejection. The bank's criteria do not match your needs.
The right funding strategy and specialist support can lead to the successful completion of many declined applications. Alternative financing options can often lead to faster, more flexible solutions.
Tapton Capital can help you turn a bank rejection into the starting point for a better-structured funding solution.
Get Expert Funding Advice Today
Don't let a bank rejection stop your business growth. Discover alternative funding options that can help you secure the finance you need.
Talk to a Specialist