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The easy mistake you can make that will make you ineligible for a loan: "Check everything before hitting that apply button"

ended 07. November 2025

THIS is the easy mistake you can make that will make you ineligible for a loan.

Financial experts said they see  business owners making many avoidable mistakes when applying for loans. 

Many of the alternative business loan providers use automated systems and even a small mistake can mean “Computer Says No!”.

Even if a decline was for something minor, that business may have to wait six months before they are allowed to apply again with that lender. 

A small mistake may be the difference between a £200,000 business loan approval at a competitive rate and a decline.

Marcus Wright, Managing Director at Bolton-based Bolton Business Finance, said a County Court Judgement (CCJ) can mean you are refused a loan.

He added: "On almost a daily basis we stop business owners from running into ‘Computer say no!’ when they are applying for business loans. 

"Especially with the rise of automated/algorithmic AI score based lending, even small errors on business bank account statements or companies house can cause automatic declines.

“Believe it or not but a £50 County Court Judgement (CCJ) might stop a £10m turnover profitable business with great accounts, from getting approved. Small Medium Enterprises (SME) really need to spend time checking everything is correct before hitting that apply button.”

Jill Poet, CEO at Organisation for Responsible Businesses, offered some advice 

She added: "Small businesses can take actions to positively impact lending decisions. Many high street banks are now factoring sustainability plans or broader ESG (Environmental, Social, Governance) commitments into lending decisions. 

"Why is ESG relevant? ESG was introduced by the institutional investment sector as a means of measuring and understanding risk when considering large investments. While ESG has gradually become mainstream and now perceived as a protocol for best business practice, the risk element remains. If a small company can show that ESG protocols are embedded in the way it operates, preferably evidenced in a way that is more than just a templated policy, banks perceive they understand and are managing potential long-term risks. 

"However, when looking for ESG advice and support, businesses should work with an organisation that focuses on the small business sector and understands how ESG translates in the context of a very small business to avoid being charged exorbitant rates."

Here are five ways you could be refused a loan:

  1. Transferring spare cash into a savings account or pot every day, reducing end of day balances to £0
  2. Using non-bank, obscure or personal bank account providers that are not compatible with a lenders software
  3. Companies house errors such as spelling mistakes, incorrect addresses, overdue confirmation statements/accounts
  4. Small unsettled business CCJs and other credit score errors
  5. Applying too quickly before new accounts have fed through to Experian/TransUnion/Equifax

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Marcus Wright
Managing Director at Bolton Business Finance
On almost a daily basis we stop business owners from running into ‘Computer say no!’ when they are applying for business loans. Especially with the rise of automated/algorithmic AI score based lending, even small errors on business bank account statements or companies house can cause automatic declines. Believe it or not but a £50 CCJ might stop a £10m turnover profitable business with great accounts, from getting approved. SMEs really need to spend time checking everything is correct before hitting that apply button.
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Jill Poet
CEO at Organisation for Responsible Businesses
Small businesses can take actions to positively impact lending decisions. Many high street banks are now factoring sustainability plans or broader ESG (Environmental, Social, Governance) commitments into lending decisions.
Why is ESG relevant?
ESG was introduced by the institutional investment sector as a means of measuring and understanding risk when considering large investments. While ESG has gradually become mainstream and now perceived as a protocol for best business practice, the risk element remains.
If a small company can show that ESG protocols are embedded in the way it operates, preferably evidenced in a way that is more than just a templated policy, banks perceive they understand and are managing potential long-term risks.
However, when looking for ESG advice and support, businesses should work with an organisation that focuses on the small business sector and understands how ESG translates in the context of a very small business to avoid being charged exorbitant rates.