Why Lloyds Declines Business Applications
Lloyds applies conservative underwriting criteria that typically require: 2+ years of audited accounts showing profitability; strong personal credit profiles for all directors; existing banking relationship (relationship banking preference); a specific asset or business profile that fits their risk appetite; and a longer decision timeline, often 6-12 weeks for secured facilities. Businesses that are growing fast, recently restructured, have irregular cash flow, or simply do not fit neatly into standard bank criteria are routinely declined.
What Alternative Lenders Offer
The alternative lending market has grown significantly since the 2008 financial crisis, specifically to serve the businesses that mainstream banks have moved away from. Key advantages: faster decisions (hours or days versus weeks or months); more flexible underwriting criteria (turnover-based, asset-based, or invoice-based); willingness to lend to businesses with shorter trading histories or adverse credit; and structures that banks do not offer (MCAs, invoice finance, specialist asset finance).
The Broker Advantage
A whole-of-market broker does not replace your relationship with Lloyds, it gives you the information to make a genuinely informed choice. If Lloyds' terms are the best available for your profile, we will tell you. If they are not, we will show you the alternatives.