How Much Can I Raise?

It is still a surprise to me that many borrowers are not aware of how much they can raise when seeking finance for a project.

In most cases, potential borrowers underestimate what they can raise and, therefore, what they can purchase. 

When looking at buying a dental practice, the amount you can borrow is often linked to several things and lenders (Banks) all have different policies, limits and requirements.

Who am I dealing with when I borrow finance?

It is very important to ensure that you are dealing with a lender who has experience and knowledge of the dental market. Many bankers are “generalists” and deal with many types of businesses. 

Several lenders have set up specialist healthcare teams, staffed with knowledgeable staff who can assess your application in the correct way. 

These specialist teams are rarely located in local branches and their experience (as you would expect) varies with how long they have been with the team.

Action Point

When seeking finance for a project, borrowers often underestimate their borrowing potential. It’s crucial to work with lenders experienced in the dental market, as they can accurately assess your application. Specialist healthcare teams within certain lenders can provide valuable insights and tailored financing solutions for dental practice acquisitions.

Click here to read more about finance options for dentists.

What determines what I can borrow?

Bank Policy determines this, and this can vary as to: 

  • Lending an amount per dentist for each transaction
  • Lending a percentage of the goodwill valuation
  • Lending a percentage of the goodwill valuation plus lending against security
  • Sometimes lenders vary the amount they will lend according to where you are in the UK
  • Your professional experience – lenders require between 3 and 5 years minimum in a practice
  • Some borrowers restrict the term of the loan to 10 years, others to 15 years
  • If you are setting up a squat (start-up) then 70% finance may be available

Click here to read more about how banks assess you when you apply for finance.

What does this mean in terms of how much I can raise?

If you take a figure of 70% -80% as a guide for purchasing an NHS or private practice, this will give you a good idea of what can be achieved. 

However, loans can be available for up to 95% with security.

Before everyone goes off to look at that £1,000,000 practice, there are some basics to remember.

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Loans must be affordable. The EBITDA of a business (Earnings before interest, tax, depreciation and amortisation) will demonstrate whether a business can afford to support a borrowing. You will need to have cash available for a deposit, solicitor’s costs and fees that lenders charge.

You may need to look at how the business will perform in the future with you as the owner. Will you keep on the seller and the existing associates?  What new services will you introduce? What will you change? 

Lenders may require projections as evidence of how you intend to grow the value of the business. 

Action Point

Your borrowing capacity is determined by various factors outlined in bank policies, such as lending amount per dentist, percentage of goodwill valuation, professional experience, and location. Typically, loans can range from 70% to 80% of the practice’s value, with up to 95% available with security. However, affordability is paramount, considering the business’s EBITDA and your ability to cover costs like deposits and fees. Lenders may also require projections demonstrating how you plan to enhance the business’s value under your ownership.

Click here to watch our webinar on financing your first practice.

How to navigate the maze when applying for finance

You could contact your own bank and see if they can assist. However, considering all the differences would that be the right structure and cost for you?

Could you get a better deal elsewhere? Remember this is going to be for 15 years!

With all the differences in pricing, fees, loan terms, commitment periods and early repayment penalties it is best to shop around.

Click here to read our blog on How to finance a healthcare business.

So why use a broker?

As brokers, we are independent. We are not tied to any lender and will look at the market for you, we act solely for you.

We will assess your own situation as an individual case, we will approach several lenders who we believe can help you, using our own experience and knowledge of the industry.

We will obtain offers of finance for you from several sources so that you can compare the offers and decide which is best for you and your business.

We will negotiate on your behalf to get the best price for you and liaise with the lender through the process of due diligence, valuation,  taking of security and any other requirements they may have.

You will have us by your side throughout the process, utilising 200 years of banking experience across the team and the knowledge of us having completed so many deals in that time.

Action Points

  • Independence: Brokers are not tied to any specific lender, allowing them to impartially assess the market and find the best fit for your needs.
  • Personalized approach: Brokers evaluate your unique situation and approach multiple lenders they believe can offer suitable solutions based on their industry expertise.
  • Access to multiple offers: Brokers obtain finance offers from various sources, enabling you to compare terms and select the most favorable option for your business.
  • Negotiation support: Brokers advocate on your behalf, negotiating with lenders to secure competitive pricing and favorable terms.
  • Expert guidance: With years of banking experience and numerous deals completed, brokers provide invaluable support and guidance throughout the entire process.

We will make sure that you see what is available across the market.

Click here to read 5 reasons to use a commercial finance broker.

Business Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Using a Commercial Finance Broker

Starting and growing a business costs a lot of money. For most business owners, getting money and managing it can be really hard. That’s where business finance brokers come in to help. In the UK, a business finance broker can help you understand the complicated world of money. They can connect you with many ways to get money and give you advice that’s right for your business. In this blog post, we’ll talk about why it’s a good idea to work with a business finance broker in the UK. They can help you get money, give you expert advice, and make deals with banks that are better for you. We’ll also explain what makes business finance brokers different from other money advisors and how they can open up money opportunities for your business.

Introduction to commercial finance and its importance

Money plays a big role in making businesses successful. Whether you’re a small startup or a well-established company trying to get bigger, having the right financial help is really important to reach your goals.

Business finance means special money services and products made just for businesses. These can be things like loans, credit lines, using your assets to get money, factoring your invoices, leasing equipment, and more. Unlike regular personal money stuff, business finance focuses on giving companies the money they need for things like starting new projects, growing, buying equipment, managing money coming in and going out, and paying bills.

Business finance is super important because it helps businesses bridge the gap between the money they have right now and what they need to grow. So, whether you need money to launch a new product, buy another business, or invest in research and development, business finance is there to help.

One great thing about business finance is that it’s flexible. Unlike personal money options that can be strict, business finance can be customized to fit the specific needs of each business. This means that businesses can get the right funding that matches what they need, which keeps them financially stable and helps them grow.

But, dealing with the world of business finance can be tricky for companies. This is where business finance brokers come in.

A business finance broker acts as a middleman between companies looking for money and the banks or financial institutions that provide it. They really know the business finance market and have a big network of lenders, so they can find the best financial options for their clients.

By choosing a business finance broker in the UK, companies can open up lots of financial opportunities they might not find on their own. These brokers can help figure out how much money a business needs, show options from different lenders, negotiate deals, and ultimately get the best funding deals.

In short, business finance is super important for companies that want to grow and succeed in today’s competitive world. With the help of a reliable business finance broker in the UK, companies can discover a world of financial opportunities and make sure they have the money they need to achieve their goals.

The role of a commercial finance broker

When it comes to understanding the complicated world of business finance, having a knowledgeable and experienced professional by your side can make a big difference. That’s where a business finance broker comes in.

A business finance broker acts as a middleman between companies looking for funding and the banks or financial institutions that provide funding options. Their job is to understand the unique financial needs and goals of their clients and then connect them with the most suitable banks and financial products available in the market.

One of the main advantages of working with a business finance broker is their extensive network of lenders. These brokers have established relationships with various banks, credit unions, private lenders, and other financial institutions, giving them access to a wide range of funding sources. This means they can help you explore multiple funding options and find the best fit for your business.

Additionally, business finance brokers are well-versed in the different types of funding available, such as business mortgages, business loans, asset finance, invoice financing, and more. They have in-depth knowledge of the lending rules, terms, and conditions for each option, allowing them to provide expert guidance and advice tailored to your specific situation.

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Another important aspect of working with a business finance broker is their ability to negotiate on your behalf. They understand the intricacies of the lending process and can use their expertise to secure favorable agreements, potentially saving you money in the long run. Moreover, brokers can help streamline the application and approval process, ensuring that all necessary documentation is in order and increasing the likelihood of a successful funding outcome.

In summary, the role of a business finance broker is to simplify the complex world of business finance and provide businesses with access to a wider range of funding options. By leveraging their expertise, industry connections, and negotiation skills, they can help you unlock financial opportunities and make informed decisions that align with your business goals.

Click here to read our article ‘Why was my business loan denied?

Benefits of using a commercial finance broker in the UK

Using a business finance broker in the UK can bring many advantages that can greatly improve your financial opportunities. Whether you are a business owner seeking funding for expansion or a property developer looking for support for your next project, a business finance expert can be a valuable partner in dealing with the complex world of money.

One of the big benefits of working with a business finance expert is their knowledge and experience in the field. They specialize in understanding the complexities of the financial market and have extensive networks and connections in the industry. This means they are well-equipped to find the best funding options for your specific needs. They can analyze what’s available, evaluate different loan products and lenders, and provide you with personalized recommendations that align with your goals.

Another advantage of using a business finance broker is the time and effort they can save you. Researching and comparing various loan options can be a time-consuming and overwhelming task. A broker, on the other hand, can handle all the hard work for you. They will gather the necessary information, complete the paperwork, and negotiate with lenders on your behalf. This allows you to focus on running your business or managing your investments, while the broker takes care of the funding process.

Additionally, business finance brokers often have access to exclusive deals and rates that may not be readily available to individuals or businesses. Their connections with banks and financial institutions can provide you with access to better agreements, potentially saving you money in the long run. They can also provide valuable insights into the current market trends and help you make informed decisions about your financial strategy.

Moreover, using a business finance broker can improve your chances of getting approved for a loan. These experts have a deep understanding of the lending criteria and requirements of different lenders. They can help you prepare a competitive application that highlights your strengths and addresses any potential weaknesses. By presenting your case in the best possible light, a broker can increase your chances of securing the funding you need.

In summary, choosing to work with a business finance broker in the UK can bring a range of benefits to individuals and businesses seeking financial opportunities. From their expertise and industry connections to the time and effort they can save you, partnering with a broker can simplify the funding process and enhance your chances of success. If you’re looking to unlock financial opportunities and navigate the complex world of money, teaming up with a business finance expert is a wise choice.

Click here to find out more about bridging loan finance.

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Did You Know?


  1. Regulatory Oversight: In the UK, financial brokers are typically regulated by the Financial Conduct Authority (FCA). Make sure the broker you choose is authorized and regulated by the FCA. You can verify this information on the FCA’s official website.
  2. Independence vs. Tied Brokers: Some brokers are independent, meaning they can recommend products from a wide range of providers, while others are tied to specific financial institutions or companies. Consider whether you prefer an independent broker who can offer a broader selection of options or a tied broker who specializes in a particular area.
    Samera are an independent broker.
  3. Commercial finance brokers arranged over £100 billion in loans and other forms of finance for UK businesses in 2022. (Source: National Association of Commercial Finance Brokers)
  4. The average value of a commercial loan arranged by a broker is £250,000. (Source: National Association of Commercial Finance Brokers)

Access to a wide range of financial products and lenders

When it comes to understanding the complex world of business finance and finding the right financial solutions, it’s crucial to have access to a wide range of financial products and lenders. This is where a business finance expert in the UK can be incredibly valuable.

Unlike traditional banks or lenders that often have limited options, a business finance broker has a vast network of lenders and financial institutions at their disposal. This means they can provide you with access to a diverse range of financial products tailored to meet your specific needs and requirements.

Whether you’re seeking a business mortgage, business loan, asset finance, or any other form of funding, a broker can help you explore multiple options and find the most competitive rates and terms available in the market. They have established relationships with various lenders, including mainstream banks, specialized lenders, private investors, and alternative finance providers.

By working with a business finance broker, you can save time and effort that you would otherwise spend searching for suitable lenders on your own. They will do the hard work for you, using their expertise and industry connections to present you with a well-organized list of options that align with your financial goals.

Additionally, a broker can provide valuable insights and guidance throughout the funding process. They possess a deep understanding of the lending landscape and can assist you in selecting the most appropriate financial product for your specific business needs. Their expertise can also improve your chances of securing funding, as they can help you prepare and present strong aspects of your business to lenders.

In summary, choosing to work with a business finance broker in the UK gives you access to a wide array of financial products and lenders. This enables you to explore a broader range of options, secure better terms, and ultimately unlock the financial opportunities that are best suited for your business.

Click here to read our article ‘How much can I raise?’

Expertise and industry knowledge

When it comes to finding financial opportunities, having the right knowledge and industry expertise can make a big difference. This is where a business finance expert in the UK can really help. These professionals understand the complexities of the financial world and keep up with the constantly changing market.

By choosing a business finance broker, you gain access to a wealth of knowledge and experience that can be valuable in dealing with the complex world of money. These experts have a deep understanding of various industries and can offer valuable insights tailored to your specific needs and goals.

Whether you need funding to start a new business, expand your current operations, or invest in new ventures, a business finance broker can provide expert advice and guidance. They can help you identify the most suitable funding options available, whether it’s a traditional bank loan, alternative lending solutions, or government-backed programs.

Moreover, business finance brokers have established connections with a wide network of banks and financial institutions. This means they can leverage their relationships and negotiate on your behalf to secure the best possible terms and rates for your funding needs. Their industry knowledge allows them to understand the subtle details of different lenders and their specific requirements, ensuring a smooth and efficient funding process.

In addition to their expertise, business finance brokers also stay up-to-date with the latest market trends and regulations. This ensures that you receive accurate and timely information that can impact your financial decisions. They can advise you on any changes in lending rules, interest rates, or government schemes that could affect your funding choices.

In summary, choosing a business finance broker in the UK gives you access to a wealth of expertise and industry knowledge. Their ability to navigate the financial landscape, connections with lenders, and capacity to navigate complex funding options make them a valuable partner in unlocking financial opportunities for your business.

Click here to read our article on ‘How to make sure your loan application is successful’.

Time-saving and convenience

When it comes to finding money opportunities for your business, time is precious. As a business owner or entrepreneur, your time is really valuable, and spending it on figuring out the complicated world of business finance can be overwhelming and take up a lot of time.

That’s where a business finance broker in the UK can be a game-changer. By choosing to work with a professional broker, you can save valuable time and enjoy unmatched convenience throughout the whole process.

A business finance broker acts as your trusted advisor, guiding you through the complexities of various financial products and lenders. They have extensive knowledge of the market, access to a large network of lenders, and the expertise to match your specific business needs with the right financial solutions.

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Instead of spending countless hours researching different banks, comparing interest rates, and filling out numerous applications, a business finance broker streamlines the entire process for you. They do the hard work, conduct thorough research, and provide you with personalized options that align with your financial goals.

Moreover, a broker can often expedite the approval process, as they understand the requirements and preferences of different lenders. This means you can access the funds you need more quickly, enabling you to seize time-sensitive business opportunities and drive your growth.

The convenience provided by a business finance broker goes beyond saving time. They can also handle negotiations on your behalf, ensuring that you secure the most favorable agreements. With their expertise and industry connections, they can often secure better interest rates, flexible repayment options, and higher loan amounts than you could obtain on your own.

Furthermore, a business finance broker can offer personalized guidance and support throughout the entire funding journey. They can help you navigate complex paperwork, decipher financial jargon, and provide valuable insights into the best strategies for managing your business finances.

In summary, choosing a business finance broker in the UK offers significant time-saving benefits and unmatched convenience. By entrusting the task of securing financial opportunities to a professional, you can focus on what matters most – running and growing your business – while having confidence that you are making informed financial decisions.

Click here to read our guides on managing your cash flow.

Tailored financial solutions for your business

When it comes to handling the money side of your business, one solution doesn’t fit all. Every business has its own unique financial needs and challenges, and finding the right solutions can be a daunting task. That’s where a business finance expert can make a big difference.

A business finance broker in the UK specializes in understanding the financial landscape and the specific requirements of businesses in various industries. They have the expertise and knowledge to assess your situation and goals, and then create financial solutions that are specifically designed to meet your needs.

Whether you need funding to start a new business, expand your operations, invest in new equipment, or manage cash flow, a business finance broker can guide you through the available options and help you make informed decisions. They have access to a wide network of lenders and financial institutions, allowing them to find the best possible deals for your business.

By working with a business finance broker, you can save valuable time and effort that would otherwise be spent researching and comparing various financial products and services. They will do the research for you, presenting you with a range of options that align with your business objectives. This personalized approach ensures that you receive the most suitable financial solutions that address your specific challenges and help you unlock new opportunities for growth.

Moreover, a business finance broker can also provide valuable support and guidance throughout the application and approval process. They understand the complexities of financial paperwork and can help you prepare the necessary documentation to improve your chances of securing funding. Their experience and industry connections can also expedite the approval process, allowing you to access the funds you need more quickly.

In summary, choosing a business finance expert in the UK offers your business the advantage of tailored financial solutions. With their expertise and access to a vast network of lenders, they can help you navigate the complex financial landscape and find the best possible options for your unique needs. By partnering with a business finance broker, you can unlock financial opportunities that will drive your business forward and ensure its long-term success.

Click here to read our guides on different types of finance solutions.

Navigating complex financial processes and requirements

Understanding complex financial processes and needs can be a challenging task, especially for businesses in the UK seeking financial opportunities. This is where the expertise of a business finance broker becomes crucial.

Business finance brokers are specialists who focus on helping businesses with their financial needs. They have a deep understanding of the intricate processes and requirements involved in securing funding or managing financial transactions. From securing loans and mortgages to negotiating lease agreements and restructuring debt, a business finance broker is well-versed in the complexities of the financial landscape.

One of the main advantages of working with a business finance broker is their ability to navigate the maze of regulations and paperwork that often accompany financial transactions. They stay up-to-date with the latest industry trends and regulations, ensuring that businesses are compliant and well-informed at the same time. This expertise can save businesses significant time and effort, allowing them to focus on their core operations.

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Moreover, business finance brokers have access to a vast network of lenders and financial institutions. This network enables them to identify the most suitable financial opportunities for each business’s unique needs and circumstances. Whether it’s securing competitive interest rates, finding flexible repayment terms, or exploring alternative funding options, a business finance broker has the connections and experience to negotiate favorable deals on behalf of their clients.

Additionally, the financial landscape is constantly evolving, with new products and opportunities emerging regularly. A business finance broker stays up-to-date with these changes, ensuring that businesses are aware of the latest financial options available to them. By providing tailored advice and guidance, they help businesses make informed decisions that align with their long-term financial goals.

In conclusion, navigating complex financial processes and requirements is a daunting task for businesses. By choosing a business finance broker in the UK, businesses can benefit from their expertise, industry knowledge, and extensive network of lenders. With their guidance, businesses can unlock financial opportunities and pursue sound financial decisions that contribute to their growth and success.

Click here to read our article on ‘Secondary Sources of Finance.’

How to choose the right commercial finance broker in the UK

Choosing the right business finance broker in the UK is crucial to unlock the financial opportunities your business needs. With so many options available, it can be overwhelming to figure out which broker is the best fit for your specific needs. However, by considering a few key factors, you can make an informed decision and secure the expertise and support necessary for your financial success.

First and foremost, when selecting a business finance broker, assessing their experience and expertise in the industry is important. Look for a broker with a proven track record of successfully helping businesses obtain suitable financial solutions. A broker with deep knowledge and understanding of the UK business finance market will be better equipped to navigate the complexities and find tailored solutions that align with your unique requirements.

Moreover, consider the broker’s network and connections within the industry. An established broker will have strong relationships with lenders, financial institutions, and other key players in the market. This network can provide you with access to a wider range of funding options and increase your chances of securing favorable terms and rates.

Transparency and trust are also important considerations when choosing a business finance broker. Ensure that the broker is transparent in their communication, providing clear and comprehensive information regarding fees, terms, and conditions. A reputable broker will prioritize your best interests and maintain open communication throughout the entire process.

Furthermore, it is essential to evaluate the level of personalized service and attention you will receive from the broker. A reputable broker will take the time to understand your business goals, financial situation, and specific needs. They will then tailor their approach, offering customized solutions that align with your objectives and help you achieve long-term financial success.

In conclusion, seek testimonials and reviews from previous clients to gain insight into the broker’s reputation and customer satisfaction. Positive feedback and recommendations can provide confidence and trust in your decision-making process.

By carefully considering these factors, you can choose the right business finance broker in the UK, ensuring you have a trusted partner who will help you unlock the financial opportunities your business deserves.

Click here to book a consultation with one of our commercial finance brokers.

Using a commercial finance broker

So, why should you be using a commercial finance broker to help you raise finance for your business? Because they give you the best chance of getting the best deal on the market. 

Commercial finance brokers have the contacts and know-how to ensure that your application is as likely to succeed as possible. Hey know exactly how banks want applications to be formatted and what they want them to include. They know a good business plan when they see one and they know a viable investment opportunity when they see one and they know a bad loan deal when they see one. A commercial finance broker can help make sure your loan application is more successful than if you had applied on your own. 

If you need help with your loan application, or if you want to make sure you are getting the best possible price on the market for your loan, contact us today! Our brokers have a network of contacts throughout the UK’s financial institutions to make sure your business is getting the best funding at the right price. 

Our Expert Opinion

“I cannot stress how important it is to have a commercial finance broker to help you. But not all brokers are equal, you need someone who understands you, your industry, your financial situation. A good broker will find you a deal, a great broker will get you many deals and then help you evaluate the best option available to you.”

Business Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Why Was My Business Loan Denied?

How to make sure a business loan application is successful

Why was your business loan application denied?

If you have recently applied for a business loan and your application was declined, it may feel insulting or demeaning, but the first thing you need to understand is that it is nothing personal. There are several potential reasons for having a business loan denied. 

It is important to note that there are many lenders out there with different lending conditions which means that if you get rejected for a certain reason by one lender, you may get accepted elsewhere because a different lender has different loaning options. There are various options that are available to you in order to improve your chances of getting approved the next time you apply. 

There are many reasons as to why you may have had a business loan denied, the good part is that it is not at a lender’s discretion to explain why. Usually, you will receive what’s called an adverse action letter from the lender explaining the reasons why you were rejected for a business loan. 

There are usually two main factors that lead to lenders denying business loan applications, these are predominantly problems with credit and problems with income. 

Here are some of the reasons you might have had a business loan denied.

Poor credit history

Lenders primarily look at your borrowing history which is reflected through your credit scores. This is because lenders want to know if you are able to pay back the loan, seeing a solid history of borrowing and repaying will put the lenders at ease to know that their loan will be repaid back to them.

However, if you have not borrowed much in the past, your lack of credit history may lead to your loan being declined or if you have experienced complications with repaying loans in the past.

Brief credit history

The length of your credit history is important to show your creditworthiness to lenders. They need to be able to see that you have an established history with credit products. No history does not reflect a good history. No history means nothing to base the fact that you will be a responsible borrower.

If you keep up responsible habits such as consistently paying off your bills with a credit card or any other form of credit, in time your score will reach its full potential. This can help reduce the chances of having a business loan denied.

Bankruptcy

Bankruptcy will affect your credit rating therefore making it quite difficult for you to get a loan from many lenders. It is also against the law to borrow more than £500 from any lender without telling them that you are bankrupt until you are discharged from your bankruptcy.

Insufficient/unverified income

Lenders look at your work, investments, and other sources of income in order to assure them that you will be able to repay the loan. With some loans, lenders are required by law to calculate your ability to repay the loan through your income.

Even if you have a good credit history, if the numbers do not add up in the end, lenders may decline your loan for that reason. Either because you don’t earn enough to repay the loan or your income cannot be verified with the information you have provided.

Debt-to-income ratio

This ratio is the comparison of how much you owe each month to how much you earn. Most lenders use your own debt-to-income ratio in order to determine whether you will be able to handle the repayments after the approval of your loan.  You may see your business loan denied if the numbers add up and it looks like your business will not be able to handle any new debts.

Collateral

With some loans, you are able to personally guarantee the loan with your lender by essentially pledging a personal asset as collateral that is valued at the same amount of the loan. If you have a poor or brief credit history as well as no collateral, the chances of getting approved for a loan are much lower.

Contact us to find out more

Too many credit inquiries

You may think that applying for several loans at once with different companies may increase your chances of getting approved, but think again. When you apply for more than one loan or credit within a short period of time, it negatively impacts your credit rating. There is no limit or rule to determine how much credit you can apply for or the number of applications you wish to make however, there are consequences to your credit rating if you are making multiple applications for credit.

Making multiple loan applications also makes it seem like you are desperate for money which does not sit right with a lot of lenders, the argument is that, if you look like you need the loan so badly, you may struggle to repay it. As this will also reflect badly on your credit rating, it will make it difficult for you to receive credit or loans in the future as with any loan that you apply for, the lender will complete a credit check.

Change in income

The figure on your pay check every month does not affect your credit score. But lenders look at your income to determine whether that income will be sufficient enough to repay the loan. Therefore, affecting your eligibility for certain new credit accounts.

Recent late payments

You may be very responsible when it comes to paying your monthly credit card bills and you may have done it for years, slowly building up your credit score, but you had an off month and out of nowhere you accidentally miss a few payments. Unfortunately this can affect you pretty badly. The higher the score, the harder it falls when something occurs to hurt your credit rating. This, in some cases, can hurt your loan application more than consumers who had poor credit to begin with.

Foreclosure

Usually, for conventional borrowers, there is a waiting period of typically seven years after a foreclosure for the borrower to be eligible for another loan. For mortgage loans, the waiting period is a minimum of three years until you will be able to apply for a mortgage, this is three years from the time that the foreclosure case has completely ended.

Other issues

In some instances, you can have a business loan denied for less obvious reasons. This could include mistakes such as submitting an incomplete application, or perhaps a problem with your business model.

Action Points

  • Credit Challenges: Issues with poor credit history, brief credit history, or bankruptcy can lead to loan application denial. Lenders assess your borrowing and repayment history to gauge reliability.
  • Income Verification Problems: Insufficient or unverifiable income may result in loan rejection. Lenders need to ensure your income is adequate for loan repayment.
  • High Debt-to-Income Ratio: If your monthly debt obligations compared to your income are too high, lenders may doubt your ability to manage additional loan payments.
  • Lack of Collateral: For loans requiring collateral, not having sufficient assets to secure the loan can lead to denial.
  • Excessive Credit Inquiries: Applying for multiple loans in a short period can negatively impact your credit rating and make you appear desperate for credit, which is a red flag for lenders.
  • Income Stability Concerns: Any recent changes in income or employment can affect loan eligibility, as lenders look for stable income for repayment assurance.
  • Recent Payment Delinquencies: Late payments, especially recent ones, can significantly impact your credit score and loan application, regardless of a previously good credit standing.
  • Foreclosure History: A recent foreclosure can impose a waiting period before you’re eligible for certain types of loans, affecting your loan application.
  • Application Errors or Business Model Concerns: Incomplete applications or issues with your business plan can also be reasons for loan denial.

I’ve had a business loan denied – What do I do next? 

Having a business loan denied can be disappointing and frustrating but the good news is there are some steps that you can take to get your application reconsidered.

Find out why you were rejected

You need to find out why you were rejected in the first place and also have a lawful right to know. Most lenders will be more than happy to explain why you were rejected and what is required from you to be reconsidered. You have the right to ask the reason behind the rejection within 30-60 days and the lender will be required to inform you the reasons. It is important to note that failure to meet “minimum standards” is not an accepted reason, it has to be a more specific, concrete reason.

It may be a bit soul-crushing reading through a list of why you did not meet a lender’s requirements, but more often than not, it is all about the numbers. The rejection is not personal. You can view the specifics and amend them or change aspects of your lifestyle or business to ensure that next time you will get approved.

Look for errors in your application

You need to thoroughly check through your application, double-check that you have not forgotten to report any source of income or accidentally embellished an additional zero to any numbers.

Review your own credit score

It does not harm your credit score for you to check your own credit. It is a good idea to check in periodically on your credit score to see what is affecting it in a positive or negative way. You are entitled by law to get a free credit report, that way you can see what the banks can see.

Request reconsideration

If you have noticed an error in your application that can be corrected or suspect that you just barely missed the mark to qualify for the loan, it is worth calling the lender to discuss your case. This conversation should be a formal discussion, not you begging to be approved for the loan. How you act affects your image with lenders, go through all the points clearly that you have to get your loan reconsidered and accept whatever their response may be.

In conclusion, these steps might help you convince a lender to reverse their decision as well as improve your application. Unfortunately there is no guarantee however, there are other options out there for you. 

If you have had your business loan denied or you have concerns over your application, contact us today, Our team can help make sure your loan application has the greatest chance of success. We can also advise you on the best alternative funding options for your business if you cannot secure a bank loan.

Action Plan

  • Identify Rejection Reason: Request the specific reason for your loan denial from the lender, as understanding this can guide improvements.
  • Review and Correct Application: Double-check your application for accuracy and completeness.
  • Assess Your Credit: Check your credit report for errors or areas of improvement.
  • Seek Reconsideration: If an error is found or circumstances have changed, formally request a loan reconsideration with the lender.
  • Consider Alternatives: If still unsuccessful, explore other funding options suitable for your business needs.

click here to read our articles samera learning centre.

Business Loans for Dentists

We’ve been helping to fund the future of the UK’s dentists for 20 years and our team are made up of former bankers with decades of experience and contacts in the UK’s healthcare lending sector.

You can find out more about working with Samera Finance and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

Dental Practice Finance: Further Information

For more information on raising finance for your dental practice, including more articles, videos and webinars check out our Learning Centre here, full of articles an webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Obtaining Loans After COVID-19

How hard is it to get a loan in a post-COVID world? Are the banks still lending?

The answer is – YES! The banks are still lending, you just need to make sure your application is is as good as it can be.

Click here to read our blog on How to finance a healthcare business.

Business Loans for Healthcare Businesses

We’ve been helping to fund the future of British healthcare businesses for over 20 years and our team are made up of former bankers with decades of experience in the UK’s healthcare lending sector.

You can find out more about working with Samera and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

For more information on raising finance for your healthcare business, including more articles, videos and webinars check out our Learning Centre here, full of articles and webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

How to Make Sure Your Loan Application is Successful

Business Loans for Dentists

We’ve been helping to fund the future of the UK’s dentists for 20 years and our team are made up of former bankers with decades of experience and contacts in the UK’s healthcare lending sector.

You can find out more about working with Samera Finance and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

Dental Practice Finance: Further Information

For more information on raising finance for your dental practice, including more articles, videos and webinars check out our Learning Centre here, full of articles an webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.

Do You Know the 3 Main Ways to Raise Finance?

Click here to read our articles Samera.

Business Loans for Dentists

We’ve been helping to fund the future of the UK’s dentists for 20 years and our team are made up of former bankers with decades of experience and contacts in the UK’s healthcare lending sector.

You can find out more about working with Samera Finance and the financial services we offer by booking a free consultation with one of the Samera team at a time that suits you (including evenings) or by reading more about our financial services at the links below.

Dental Practice Finance: Further Information

For more information on raising finance for your dental practice, including more articles, videos and webinars check out our Learning Centre here, full of articles an webinars like our How to Guide on Financing a Dental Practice.

Make sure you never miss any of our articles, webinars, videos or events by following us on Facebook, LinkedIn, YouTube and Instagram.