Common grounds for declining credit applications include:
#1: Low ability of applicant to repay the facilities applied;
#2: Purpose of financing does not align with facilities applied;
#3: Poor financial records of the applicant / poor repayment records with other lenders
#4: Applicant obtain other substantial borrowings resulting in high gearing
#5: Unsatisfactory conduct of bank account by the applicant
#6: Applicant has pending legal action
#7: High business risk i.e. over dependence on single buyer or supplier
#8: Lack of financial commitments from business owners (i.e. not willing to commit additional working capital)