What to do after a loan decline (turning a no into a yes)
A decline isn't a verdict on your business. It's feedback — usually about a fixable gap in the file. Here's how to come back stronger.
Most declines aren't "never." They're "not like this." The trick is finding out which gap sank it, then closing it before you reapply.
First, get the reason
Ask the lender specifically why. It's often one or two things — thin coverage, an undocumented number, too little contribution — not a wholesale rejection.
Then, fix the actual gap
- Weak DSCR → trim the ask or strengthen the revenue case.
- Undocumented figures → add the assumptions.
- Thin contribution → increase it or bring a co-investor.
Consider a fresh set of eyes
Reapplying with the same file usually gets the same answer. Have someone who knows what lenders check read it first — that's exactly what a pre-application review is for.
See where your plan stands
Paste the plan you have into the free Scanner. It scores you against the eight criteria Canadian lenders use — in about thirty seconds, no account, nothing leaves your device.
Score my plan — freeLenderReady is an educational service, not a lender, broker, or financial advisor. Lending criteria vary by institution and change over time; treat this as a starting point, not a guarantee.