Bank refused your business loan? Credit Review and next steps

Under the Central Bank's SME Lending Regulations, a regulated lender that refuses a credit application from a micro or small enterprise must give a specific explanation of why, in writing or another durable form. The reasons must be clear, easy to understand and relevant to your application, not a generic form letter.

Read the reasons carefully. Common themes include:

• Affordability: the lender does not think current or forecast cash flow can support the repayments.
• Credit history: missed payments or arrears on the Central Credit Register for the company or directors.
• Out-of-date information: old accounts, no management accountsInternal financial reports, usually monthly or quarterly, showing a company's recent trading, balance sheet and cash position., or missing tax clearance. Our document checklist can help.
• Security: the lender wanted security or a guarantee that was not available.
• Sector or purpose: the loan purpose or industry falls outside the lender's appetite.

Knowing the real reason tells you whether to appeal, fix something and reapply, or look elsewhere.

The Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 apply to lenders regulated by the Central Bank, including credit unions since 1 January 2017. Enhanced protections apply to micro and small enterprises, meaning businesses with fewer than 50 employees and turnover or a balance sheet of up to €10 million. Key protections include:

• The lender must acknowledge your credit application within five working days.
• If it cannot decide within 15 working days, it must tell you why and what information it needs.
• A refusal must come with specific written reasons.
• Where the decision can be reviewed by the Credit Review Service, the lender must tell you about it and give contact details.
• The lender must have an internal appeals process, with a panel of at least two people not involved in the original decision.
• Before anyone signs a personal guaranteeA legally binding promise by a director or other individual to repay a company's debt if the company cannot., the lender must explain in writing why it is needed and what the consequences could be.

These rules apply to lenders regulated by the Central Bank. They do not make the lender approve your loan, but they do mean you are entitled to a clear explanation and a fair review.

Your company can appeal a refused application, a withdrawn or reduced facility, special conditions attached to an offer, or a refused alternative arrangement. Under the regulations you must be given at least 20 working days from notice of the decision to consider whether to appeal.

If the lender cannot decide your appeal within 15 working days, it must tell you before that period ends how long it will take and why. Once the appeal is decided, it must notify you within five working days, and tell you about your right to go to the Credit Review Service if that applies.

In your appeal, respond directly to the reasons given. Provide any missing or updated information, such as current management accounts, a cash flow forecast or evidence of new contracts. Keep it factual and concise.

The Credit Review Service is an independent statutory body that reviews credit decisions by participating banks. It was placed on a stand-alone statutory footing by the Credit Review Act 2026, and the Service was formally established on 1 July 2026.

Who and what it covers

• Borrowers: SMEs, sole traders and farm enterprises seeking business credit.
• Lenders: AIB, Bank of Ireland and PTSB. The Act allows coverage to be extended to regulated non-bank lenders in future, but for now non-bank lenders are not covered.
• Amounts: credit facilities from €1,000 to €3 million.
• Decisions: credit that has been refused, reduced or withdrawn, and refused or withdrawn alternative arrangements.

Deadline, fee and process

You must complete the bank's internal appeal first. Your completed application must then reach the Credit Review Service within 30 days of receiving the bank's letter. The Act allows the Service to extend this by up to 10 days, but only for good reason outside your control, so do not rely on it.

The fee depends on the amount involved:

• Up to €100,000: €100.
• €100,000 to €250,000: €1 per €1,000, up to a maximum of €250.
• €250,000 to €3 million: €250.

You download the SME application form from the Credit Review website, sign it, and email a scan or post the original with the fee. Incomplete applications are returned. The Service says the process typically takes about four weeks from receipt of an eligible application to an opinion, though complex cases can take longer.

What happens next

The Service looks at the business case and creditworthiness, including your ability to repay from likely future income. It can uphold the bank's decision, recommend that the bank offer credit or an alternative arrangement, or make another recommendation. The bank keeps its commercial independence and can decline a recommendation, but it must respond within five working days with its reasons, and you receive a copy.

A bank refusal does not mean every lender will say no. Non-bank lenders often assess applications differently, for example by putting more weight on recent trading through bank statements or on the value of an asset or invoices. They may cost more than bank finance, so compare the total cost carefully.

Options to consider include:

• Unsecured business loans from non-bank lenders for shorter-term needs.
• Asset financeAn umbrella term for funding used to acquire vehicles, plant, machinery, equipment or technology, where the asset itself usually acts as security., where equipment or vehicles support the borrowing.
• Invoice finance, which advances money against unpaid customer invoices.
• Business refinance, to restructure existing debt into more manageable repayments.
• State-backed loans such as the SBCI Growth and Sustainability Loan Scheme, applied for directly with another participating lender. The participating lenders are AIB, Bank of Ireland and PTSB, with Close Brothers and Finance Ireland due to start taking applications (announced 12 October 2026).

If your business loan was declined because of arrears or missed payments, our guide to business loans with a poor credit history explains how lenders weigh a weaker record, and our neutral directory of business lenders in Ireland lists bank and non-bank options.

Welcome Finance works with a panel of five specialist non-bank lenders: 365 Finance, Flurish, Linked Finance, Treyd and Triffin. They can consider unsecured and short-term business loans, working capital loans, merchant cash advance, revenue-based finance, stock finance and trade finance. We do not arrange SBCI loans. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead. All finance is subject to status and lender approval, and approval is never guaranteed. We are paid commission by lenders. We do not charge your company a fee and never ask for payment upfront. Welcome Finance is a commercial finance broker, not a lender, is not regulated by the Central Bank of IrelandIreland's financial regulator and part of the Eurosystem., and arranges business-purpose finance only for companies registered in Ireland (LTD, DACA type of Irish private company under Part 16 of the Companies Act 2014 that keeps an objects clause in its constitution, limiting what it can do, and uses the suffix DAC., PLCA company type under Part 17 of the Companies Act 2014., ULCA company under Part 19 of the Companies Act 2014 whose members have unlimited liability for its debts.).

1. Fix the stated reason first. If it was affordability, show updated figures or ask for a smaller amount or longer term.
2. Bring accounts, management accounts, CROThe State body that registers Irish companies and business names and keeps their public filings, including constitutions, director details, annual returns, financial statements and registered charges. filings and tax clearance up to date.
3. Check the company's Central Credit RegisterA database operated by the Central Bank of Ireland holding information on loans of €500 or more. report and correct any errors.
4. Prepare a short cash flow forecast showing how repayments will be met.
5. Avoid making several applications at once. Each lender that accesses your company's Central Credit Register report leaves a footprintThe record left on a Central Credit Register report each time a lender accesses it, showing the date, the lender and the reason., which stays on the report for five years.
6. Ask your accountant to review the application before it goes in.

When a bank says no, it can be tempting to accept any offer. Be careful with personal guarantees and security. A personal guarantee can make a director personally liable for the company's debt, and security over property or assets can be enforced if repayments are missed. The lender must explain these consequences in writing, and you should get independent legal advice before signing.