Most declines come down to a few common reasons. Knowing them before you apply gives you the chance to fix them.
Common reasons
- Credit history: recent missed payments, defaults or CCJs. See Can I get a franchise loan with bad credit?.
- A generic business plan: a copy of the franchisor's template, not adjusted for your area and costs. See Does the franchisor's forecast replace my own business plan?.
- Unrealistic forecasts: figures well above what similar units in the network achieve.
- Too little contribution, or a contribution made up entirely of other borrowing. See Can my franchise contribution come from borrowing or family?.
- Affordability: not enough left to cover repayments, the franchisor's fees and your living costs. See What ongoing fees will I pay a franchisor?.
- The brand: a new or unproven franchise gives lenders less to go on. See How do I check a franchisor before I invest?.
- Missing information, such as no franchise agreement or cost breakdown yet. See What documents do I need for franchise finance?.
If you're declined
Ask why, if the lender will tell you. A decline from one lender doesn't always mean every lender will say no, but don't make lots of applications at once.
- For a Start Up Loan, see My application was declined: can I appeal or reapply?
- For business finance, see What if my business growth loan application is declined?
Last reviewed: 8 October 2026