My bank said no. What now?

• ›Ask the bank for its reasons, and whether it has an appeals process for business lending decisions.
• ›Check your business and personal credit files before you apply again, and ask for anything wrong to be corrected.
• ›Community development finance institutions (CDFIs) focus on businesses that traditional banks often turn down.
• ›Be careful with anyone who promises finance "guaranteed" or asks for a fee up front.

Ordered by what the money costs, never by who pays to be seen: no one can pay to be on this list or to move up it. Each route shows its downsides as well as its upsides.

1. L0

   Free or nearly free

   Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees.
   • Own cash and no-cost

     Customer prepayments, deposits and pre-sales

     Ask customers to pay some or all of the price before you deliver. The cash arrives before your costs, so you borrow less, but you owe customers the goods or a refund until you deliver.

     Days
   • Own cash and no-cost

     Statutory late-payment interest and compensation

     If another business pays you late, the law lets you add interest and a fixed compensation sum to the debt. It costs nothing to claim and can speed up payment.

     Days
   • Own cash and no-cost

     Supplier trade credit (negotiated payment terms)

     Agree with your suppliers to pay them some time after they deliver. It works like a short, interest-free loan, but suppliers set the limits and may want a track record first.

     Weeks
2. L1

   Very cheap or subsidised

   Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved.
   • Own cash and no-cost

     HMRC payment plan (Time to Pay)

     If you cannot pay a tax bill on time, HMRC may agree a payment plan so you can pay it off in monthly instalments instead of all at once.

     DaysNot a raise
   • Government-backed and community lending

     Community development finance (CDFI) loans

     Loans from Community Development Finance Institutions, lenders that exist to support small businesses, start-ups and sole traders that mainstream banks often overlook.

     DaysPersonal guarantee likely
   • Government-backed and community lending

     Growth Guarantee Scheme

     A British Business Bank scheme that gives accredited lenders a 70% government guarantee, so they can offer loans, overdrafts, asset finance and invoice finance to smaller businesses they might otherwise turn down.

     Weeks£1k to £2mPersonal guarantee likely
   • Government-backed and community lending

     Social investment for charities and social enterprises

     Loans and blended grant-and-loan packages for charities and social enterprises, from social investors that want a social return as well as their money back. Often unsecured, and usually only for organisations with a social purpose.

     MonthsFrom £5k
   • Government-backed and community lending

     Start Up Loans

     A government-backed personal loan of up to £25,000 at a fixed rate, for people starting a business or in their first five years of trading, with 12 months of free mentoring.

     Weeks£500 to £25k
3. L2

   Mainstream secured debt

   Standard borrowing from banks and mainstream lenders, often secured on assets or backed by a personal guarantee.
   • Bank and mainstream debt

     Asset finance (hire purchase and leasing)

     Spread the cost of equipment, vehicles or machinery over time through hire purchase or leasing, instead of paying for it all up front.

     Weeks
4. L3

   Specialist secured debt

   Borrowing secured on specific assets such as invoices or stock, with more fees and conditions than mainstream debt.
   • Asset-based and specialist lending

     Invoice discounting

     Borrow against your unpaid invoices while you keep collecting payments from customers yourself, usually without them knowing you use finance.

     WeeksPersonal guarantee likely
   • Asset-based and specialist lending

     Invoice factoring

     A finance company pays you most of the value of your unpaid invoices straight away, then collects payment from your customers and pays you the rest, minus its fees.

     DaysPersonal guarantee likely
   • Asset-based and specialist lending

     Selective and spot invoice finance

     Get paid early on just the invoices or customers you choose, instead of your whole sales ledger. Useful for occasional cash gaps and smaller businesses, but each invoice costs more than a full facility.

     Days
   • Asset-based and specialist lending

     Stock and purchase order finance

     Finance to pay suppliers for stock, or to fulfil a large customer order, repaid when the goods are sold. It lets you take on bigger orders, but fees are high and the money can only be used for those goods.

     Weeks
   • Alternative and fast debt

     Peer-to-peer business lending

     Borrow from many individual and institutional investors through an online lending platform regulated by the FCA, instead of from a single bank.

     DaysPersonal guarantee likely
5. L4

   Expensive or fast

   Quick to arrange, often unsecured, and usually the most expensive way to borrow.
   • Alternative and fast debt

     E-commerce and payment platform finance

     Online shop and payment platforms offer funding based on your sales through them, repaid automatically as a share of those sales. It is quick and simple to get, but only open to their own sellers and the fixed fee can be costly.

     DaysFrom £1k
   • Alternative and fast debt

     Merchant cash advance

     A lump sum for businesses that take card payments, repaid automatically as a share of each card sale until the advance and a fixed fee are paid off.

     Days
   • Alternative and fast debt

     Revenue-based finance

     An advance repaid as a fixed share of your future sales, plus a flat fee agreed up front. Repayments fall when sales are slow, but the fee can make it expensive, especially if you repay quickly.

     Days
   • Alternative and fast debt

     Short-term unsecured business loans

     Fast loans from online and specialist lenders, repaid over one to 12 months, with no assets needed as security. Quick to arrange, but interest and fees are high and owners usually have to give a personal guarantee.

     DaysPersonal guarantee likely

• See which of these match your business9 questions, about 3 minutes. Each route comes back as fits, possible or unlikely, with the reasons. Your answers stay in your browser.
• What to prepare before you applyOne checklist for the 12 cheapest routes above, with the documents each one asks for. Tick as you go, and save it as a file.