A decline usually comes down to one of a few things: the business doesn't meet the funder's published minimums, the bank statements don't show room for a repayment, there is already debt on the account, or the product doesn't fit what the money is for. Most of these can be checked before you apply. Some can be fixed. And you can ask why.
You can ask for the reasons
The South African SME Finance Association's code of conduct says: "If a merchant is declined for funding, the SME Finance provider must provide reasons for the decline, to enable the merchant to understand what is required to position itself for financing in the future." (SASFA code, section 2.9)
SASFA's code applies to its members. SASFA lists them on its website (sasfa.net/members), and you can complain to SASFA at [email protected]. On 4 Nov 2026 the list named GoTyme Bank, Merchant Capital, Cash Flow Capital, Lula and Bridgement. A funder that is not a member doesn't have to follow the code, but you can still ask. If a funder turns you down, ask for its reasons in writing. They tell you what to fix, or which funder not to try next.
The usual reasons, and what you can do
| Reason | What it looks like | What you can do |
|---|---|---|
| Below the funder's minimums | Trading too short, turnover too low, or the wrong type of business. Funders publish these: Bridgement wants trading for longer than 6 months and R80,000 a month; GoTyme wants R50,000 a month | Check the minimums before you apply, or pick a funder whose minimums you meet |
| A sector the funder doesn't fund | Business Partners, for example, says it does "not finance on-lending activities, direct farming operations, underground mining" or "informal and micro enterprises and non-profit organisations" | Find a funder that does fund your sector |
| No room for a repayment | The statements show the money in barely covers the money out | Ask for a smaller amount, or a product that is repaid from the deal itself, like invoice discounting |
| Existing debt or deductions | Another advance or loan already comes off the account. SASFA's code says other SME finance "obligations are to be settled" at payout, except for a large business with enough cash flow | Settle or plan around what is running first |
| Banking conduct | How the account has been run, as the statements show it | Ask the funder what it saw, and fix that before you try again |
| Credit record | A judgment or default on the business or a director | See business credit record |
| The wrong product | Asking for a general loan when the money is tied up in an unpaid invoice, an order or a tender | Use the funding type built for that. See funding types |
| Missing papers | The funder couldn't finish its check | See documents |
What not to do after a decline
- Don't apply to many funders at once. Each credit check a funder runs is recorded on your file and stays there for a year. The one-year rule is for personal (consumer) records; see business credit record.
- Don't pay anyone who promises approval for a fee. The funder makes the decision, so nobody else can promise it. The National Credit Regulator warns about fake lenders who demand an "upfront payment" before a loan is paid out. See stay safe from scams.
- Don't change the story. If the figures on a second application don't match the first, that is a worse problem than the decline.
After a decline, with us
Tell us what the funder said. We look at the business before an application goes anywhere, and we don't send your application to every funder. Sometimes no funding fits right now, and the better step is to fix something first.
A development funder such as the National Empowerment Fund has its own rules and a much longer process (about 3 to 4 months, by its own application form), so it's a different route, not a quick second try. See how long it takes.
Next step
If you've been declined somewhere else, tell us what the funder said. Check your funding fit.
Sources
- sasfa.net: SASFA 2.9, full wording, and 2.6
- sasfa.net: GoTyme Bank", "Merchant Capital", "Cash Flow Capital", "Lula", "Bridgement
- help.bridgement.com: Trading for longer than 6 months", "monthly turnover of R80,000 or more
- gotyme.co.za: Monthly Turnover R50 000 or more
- businesspartners.co.za: exclusions list
- gov.za: Government Gazette 38557, Notice R
- ncr.org.za: NCR media release, April 2020, on fake credit providers demanding an "upfront payment
- stlm.gov.za: OUR APPLICATION PROCESS IS APPROXIMATELY 3 TO 4 MONTHS FROM THE RECEIPT OF THE APPLICATION UP TO DISBURSEMENT STAGE