£100,000 Growth Guarantee Scheme loan for a property company turned down by seven other lenders

• Borrower: Limited company with a residential property portfolio, based in Caerphilly, South Wales
• Loan: £100,000
• Term: 5 years
• Scheme: Growth Guarantee Scheme (GGS)
• Security: Personal guarantee and a second charge over one of the company's properties
• Introduced by: Bolton Business Finance
• Funded: 30 June 2026

The borrower is a profitable limited company that owns and manages a portfolio of residential property. Its director was looking for a £100,000 business loan over a term of around five years, and had already identified the Growth Guarantee Scheme as a good fit for what he needed.

He approached commercial finance broker Bolton Business Finance, who introduced the case to us in April 2026.

By the time the application reached us, it had already been declined by seven lenders. None of the declines related to the quality of the business itself. Instead, the case fell outside the criteria that many lenders apply automatically:

• The director was not a homeowner. Many unsecured business lenders will only accept a personal guarantee from a homeowning director
• The company already had borrowing. Its properties were mortgaged, which made gearing look high to automated scorecards
• Property is a restricted sector for a number of business loan providers
• Equity in the portfolio was limited, ruling out a conventional secured loan

One further lender could only offer a short-term property bridge, which didn't suit a long-term funding requirement.

As a not-for-profit Community Development Finance Institution, we look at every application individually rather than relying on an automated decision. Our team reviewed the company's latest accounts and bank statements alongside the broker's background on the business, and we issued indicative terms on the day the case was submitted.

Homeownership is not a requirement for our GGS-backed loans, so the issue that stopped other lenders at the first hurdle didn't apply.

We structured security around the assets the business actually had:

1. A personal guarantee from the director
2. A second charge over one of the company's properties, behind the existing mortgage

During underwriting we agreed to proceed without a debenture over the company, which kept the legal process simpler and reduced costs for the borrower. The existing mortgage lender gave its consent to our second charge in late June, the loan documents were signed digitally, and the £100,000 was released on 30 June 2026.

• £100,000 funded over five years with fixed monthly repayments
• Long-term funding in place of the short-term bridge that was the only other option available
• No homeownership requirement and a security package matched to the business's real assets
• Government-backed support through the Growth Guarantee Scheme for a viable business that automated lending couldn't reach

"This was a good, profitable business that simply did not fit the boxes automated lenders tick. Business Finance North West read the accounts, understood the portfolio and built a security package that worked for everyone. That is exactly the kind of lender we want to bring our clients to."

    Marcus Wright, Owner and Founder, Bolton Business Finance

Cases like this show the value of a strong broker relationship. Bolton Business Finance had already tested the market, understood exactly why the case had been declined elsewhere, and came to us with a clear explanation of the business, its portfolio and funding need. That made it straightforward for our team to assess the application quickly and fairly.

We welcome introductions from brokers for businesses that have been turned down elsewhere, despite a sound underlying proposition.

We provide loans from £25,000 to £250,000 over one to five years to businesses in England and Wales, including sole traders and CICs. Applicants need at least one year's trading history, a personal guarantee is required, and homeownership is not mandatory.

If your business has been declined by other lenders, or you're a broker with a case that needs a manual review, get in touch with our team. Alternatively, you can use our finance finder tool to identify the right funding fit for your business.

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