One in four commercial brokers say small firms are struggling to get funded. According to Atom bank's latest SME Pulse, published on 2 October, 25% of brokers found it difficult to secure funding for their clients. That is up from 19% in the previous survey and 11% in the last quarter of 2025. If your business loan is declined, it is rarely the end of the road.
01What the brokers reported
Atom bank polls commercial brokers every quarter about the previous three months. The latest edition covers the second quarter of 2026.
Demand for finance is rising again. 38% of brokers said more of their small business clients wanted to borrow, up from 33%. Only 4% reported falling demand, down from 12%.
More than two thirds of brokers put the rise in demand down to better business confidence. The release does not give the number of brokers who took part.
02Why more applications are being turned down
Brokers named three reasons why funding has become harder to secure:
- Rising interest rates.
- Stricter lender criteria.
- A preference among lenders for bigger corporate clients.
So more businesses want to borrow, and more of them are hearing no. Atom bank said access is still good on the whole. But the share of brokers reporting problems has now risen in two editions running.
03What to do if your business loan is declined
Lenders set their own criteria. A business one lender turns down can still fit another lender's appetite.
Before you apply again, ask the lender why it said no. Then check three things.
- Your accounts and cash flow forecast are up to date and tell the same story.
- The amount and term you asked for match what the business can repay.
- Your credit file has no errors you could fix first.
Avoid sending lots of applications at once. Each formal application can leave a hard search on your credit file.
A broker can look at your case across a wider range of lenders and find the ones whose criteria fit. Our growth finance page explains how we help established businesses borrow. For the wider picture, read our guide on where small business lending has moved.
