Quick answer
In the first 48 hours after a cash flow decline, find the specific reason, stop making further applications, check your own credit report, work out what property you or your directors own, and list every debt you could pay out. Then approach a lender that assesses on equity instead of cash flow, such as a second mortgage or caveat lender, with a short, honest summary.
Key points
- Get the reason first; it points to the fix.
- Don't apply to several more lenders at once.
- Check your own credit report before anyone else does.
- List your property, what's owed on it and your deadline.
- Approach a lender that doesn't rely on cash flow records.
The email arrives mid-morning. Thanks for applying, but we’re unable to proceed. Your deadline hasn’t moved, though. The supplier still wants payment, the tax bill is still due and the contract still starts next month. What you do in the next two days matters more than what you do in the next two weeks, because the wrong move, usually a panic round of new applications, can make the position harder.
This guide sets out a calm sequence. It’s written by a lender that makes fast loans against property, so it leans toward that route, but each step is useful whichever way you go.
Hour one: get the reason
Ask the lender for the main reason. You may only get a sentence, but even a sentence helps. Most cash flow declines come down to one of four things:
- Deposits. Irregular, falling or too new to judge.
- Existing debt. Too many loans already debiting the account.
- Serviceability. The repayment didn’t fit your surplus once buffers were applied.
- Credit. Defaults, judgments or ATO arrears.
If the lender won’t say, work it out from your own statements. Count the loan repayments leaving the account, look at your lowest deposit months and check for dishonours. Our page on why cash flow lenders say no explains how each reason looks from the other side of the desk.
Hours two to six: stop and protect the file
The most common mistake is applying everywhere at once. Each formal application can leave an enquiry on your credit file, and several in a few days tell the next lender that your company is being declined repeatedly. That alone can make an approvable file harder.
Pause new applications until you know which kind of lender your reason points to. If a lender has declined you because of deposits or serviceability, another cash flow lender will probably do the same. If it was credit, a score-based lender will too. The better question is which lender doesn’t apply that test.
Use the same hours to check your own credit report. The OAIC explains how to request your personal report at no cost. You want to know exactly what a lender will see, and whether anything on it is wrong.
Day one: work out what you own
Write down every property that your company, its directors or any willing guarantor owns. For each one, note the address, a realistic value, what’s owed against it and who owns it. A rates notice and a loan statement give you most of this. If a property is held in a trust, note the trustee and find the trust deed.
This list is the most valuable thing you can have at this stage. A cash flow lender can’t see it, but a property lender starts there. The gap between value and debt, after allowing for a lender’s maximum loan-to-value ratio, is your usable equity. Our property equity calculator shows it in ten seconds.
Day one: list the debts you could clear
If you’ve been declined partly because of existing loans, list each one: lender, balance, repayment, frequency and any early exit charge. A single secured loan can pay out several of them at once, and the new repayment may be lower than the old ones combined. Seeing the total and the payout figures tells you how big a loan you need and whether consolidating helps. Our page on too many existing loans shows how it works.
Day two: write a one-page summary
Whoever you approach next, a short summary saves time. Cover what the company does and for how long, what you need and why, what property is available and what’s owed against it, how the loan will be repaid or refinanced, and any credit or tax issues in plain words. Mention the decline and why. Our guide on what a credit assessor sees first explains how a summary shapes the first impression.
The exit deserves special attention. A secured lender wants to know how and when the loan ends: a refinance once your records are tidy, a sale, an incoming payment or a gradual repayment from restored cash flow. See exit strategies.
Day two: approach a lender who assesses equity
A fast loan secured against property, whether a second mortgage, a first mortgage or a caveat loan, doesn’t rely on your statements. The lender needs the title, the existing debt and the exit. Bad credit and ATO debt are considered. On a straightforward file, funding in as little as 24 hours is possible once approved.
Before you sign anything, ask for the total cost in writing over the period you expect to keep the loan, including what an extension would cost. Property-secured loans from specialist lenders usually cost more than bank loans, and the property is on the line, so be realistic about the exit and take independent advice. Our guide on the total cost of a business loan shows how to compare offers.
What not to do
A few reactions feel productive but cost you. Don’t take another short-term loan from a different lender to cover the same gap, because each new daily debit makes the next decision harder. Don’t inflate your turnover or hide existing debts in the next application, because assessors check the statements and a mismatch ends the file. Don’t ignore the ATO if a tax bill is part of the problem, because notices escalate and lodging on time keeps more options open. And don’t sign a loan you can’t explain. If you can’t say how it will be repaid, the exit isn’t ready yet. Slowing down for a day to get that right is almost always cheaper than a loan that has to be extended.
If you have no property
Not every company has a property to offer. If neither it nor its directors own real estate, the realistic options are to fix the reason for the decline, such as clearing a small loan or lodging overdue returns, to ask for a smaller amount, to extend the timeframe or to find a guarantor who owns property. It’s better to hear that honestly than to chase a loan that can’t be written.
After the money lands
If you borrow against property to get through a gap, treat the loan as a bridge. Use the breathing room to lodge anything overdue, reconcile the books, rebuild clean statements and then refinance to a cheaper lender. Our guide on preparing your company for finance in 30 days gives a simple plan.
Start with a conversation
Tell us about the decline, the property you own and what you need through our short enquiry form. There’s no credit check to enquire, no cash flow records are required and a real person will tell you what’s possible. Start your enquiry.
Frequently asked questions
Should I appeal the decision?
It's worth asking whether a person reviewed it and whether anything would change the outcome, such as a missing statement. If the reason is structural, such as too many existing loans, an appeal rarely helps and the time is better spent on a different type of lender.
Will a decline show on my credit file?
A decline isn't recorded as a mark, but a formal application may have left an enquiry. Several enquiries in a short time make the next lender more cautious.
What if I have no property?
Then a property-secured loan isn't available to the company, though a director or guarantor who owns property can sometimes provide it. Otherwise the options are fixing the cash flow reasons, a smaller amount or a different timeframe.
How quickly can a secured loan be arranged?
On a straightforward property file Company Cash can fund in as little as 24 hours once approved. It depends on the title and how quickly documents are returned.
Do I need to tell the next lender about the decline?
Yes. Be upfront. Lenders often find out anyway, and a clear explanation builds trust.