Partner program
A Client Was Declined by the Bank: What a CPA Can Do Next
A bank decline on a profitable, established business is common and rarely final. The bank’s box is narrow; the client’s options are not. Here is why it happens, what the file supports instead, and how to get the client a real answer within a day.
What Can a Business Do After a Bank Decline?
Apply to a lender network built for established businesses that banks pass on. Working capital underwritten on deposits, business lines of credit, Business Term Loans and accounts receivable financing are all placed through RAN Funding’s lender network, usually without the collateral and credit thresholds a bank applies. CPAs refer the client through RAN Funding’s partner program; one dedicated specialist reviews the file within one business day, and you keep the client relationship.
Why Banks Decline Healthy Businesses
In the Federal Reserve Banks’ 2024 Small Business Credit Survey, fewer than half of employer firms that applied received the full amount they sought, and about one in four received none.1 Firms that were turned down were more likely than in 2021 to cite too much existing debt. The usual bank reasons:
- Credit. The owner’s score is below the bank’s floor, often after one rough year.
- Time in business. Under two or three years.
- Collateral. The business is service-based and owns nothing the bank can lien.
- Industry. Restaurants, construction, auto and several others are on many banks’ restricted lists.
- Existing debt. An advance or two on the statements.
- Size. The request is too small for the bank to bother with, or too large for the branch.
None of those says the business cannot repay. They say the bank’s box does not fit it.
Read the File the Way a Funder Does
Before the referral, a five-minute look at the bank statements tells you what the client will qualify for. Funders look at:
| Signal | What it tells the funder | What helps |
|---|---|---|
| Monthly deposits | The size of funding the business can carry | Four complete months of statements |
| Average daily balance | Whether the account runs tight | A note on seasonality if it does |
| Negative days and returned items | Stress on the account | An honest line on what happened and when |
| Existing debits to funders | Positions already open | A list with lender, balance, payment and start date |
| Use of funds | A dated purpose reads better than a general shortfall | One or two sentences |
What lenders look for in bank statements covers the six signals in detail.
Which Products Fit After a Decline
| Product | Fits when | Range and timing |
|---|---|---|
| Working capital | Deposits are steady; credit or collateral was the bank’s issue | $10,000 to $500,000+, as little as 24 hours after approval |
| Business line of credit | The client wants a cushion, not a lump sum | Up to $2 million, drawn as needed |
| Business Term Loans | Established client, stronger credit, a defined project | Up to $2 million, up to 3 years |
| Accounts receivable financing | B2B client waiting 30 to 90 days on invoices | Advance on open invoices |
| Equipment financing | The need is a specific purchase | The equipment is the collateral |
Nothing here is a guarantee of approval. The specialist says which products the file supports.
What to Tell the Client About Cost
Non-bank products cost more than a bank loan. Say so plainly. The question is whether the money produces more than it costs: a contract the business could not otherwise start, inventory for a confirmed order, a hire that pays for itself. Factor rate vs APR is the page to send a client who wants to understand an offer before signing.
The hard floor: the FTC obtained a $20.3 million judgment in 2024 against a merchant cash advance operator over misrepresented terms and unauthorized withdrawals.2 A client who is offered a confession of judgment, or whose numbers move between term sheet and contract, should stop. RAN Funding places only with lenders in its network and explains every term before signature.
Which Clients to Refer
- 1+ year in business and $20,000+ in average monthly revenue.
- A business bank account with active deposits.
- The 3 most recent business bank statements (4 in NY, CA or VA), complete.
- A need of $10,000 to $500,000+ in working capital, up to $2 million on some products.
- A use for the money that produces revenue or removes a cost.
Hold off when the business is not profitable at current volume, when deposits are falling, or when the client would be borrowing to service existing debt.
How the Referral Works, Step by Step
RAN Funding is a broker, not a lender. One application for our lender network and one dedicated specialist. You make the introduction; we handle the funding process.
- Sign up on the partner page. Two minutes. Select CPA / Accountant. We call within one business day to walk through the partner agreement.
- Make the introduction. The owner’s name and number, and a heads-up that we will be calling. No licensing is needed for a basic referral introduction.
- The specialist reviews the file and calls the owner within one business day. If you want to be on the call, say so.
- The owner sees the options the file supports, with every term explained before anything is signed.
- The deal funds and you are paid the referral commission in the partner agreement. Renewals on your referrals pay you too.
Your client stays your client. RAN Funding contacts them only about the funding they asked for. No cross-selling, no marketing lists.
What to Keep in Mind
Get the client’s agreement before sharing anything. Do not describe yourself as a lender, and do not promise an approval. Nothing is guaranteed until underwriting reviews the file.
Disclosure rules vary by state. California, for example, requires a provider extending a specific commercial financing offer to give the recipient disclosures at the time of the offer. MCA disclosure laws by state is a starting point, not legal advice.
How to Start
Go to the RAN Funding partner program page and fill in the short form. Say so if you have a client who needs funding now.
For the program as it applies to your profession, see the guide for accountants and CPAs. You can also call 1-877-522-6045, Monday to Friday, 9am to 6pm ET.
Common Questions
Why do banks decline profitable businesses?
Credit, time in business, collateral, industry, existing debt or the size of the request. A decline says the bank’s box does not fit the business, not that the business cannot repay.
What can a business get after a bank decline?
Working capital underwritten on deposits, business lines of credit, Business Term Loans, accounts receivable financing and equipment financing, placed through a lender network built for established businesses. Not every file can be placed.
Does non-bank funding cost more than a bank loan?
Usually, yes. The cost is stated on the offer and explained before anything is signed. The question is whether the money produces more than it costs.
Who qualifies for funding?
Best-fit clients have 1+ year in business, $20,000+ in average monthly revenue, a business bank account with active deposits and a need for $10,000 to $500,000+ in working capital, up to $2 million on some products. This is business financing only, for established businesses. Not every file can be placed.
Do I need a license to refer a client?
No licensing is needed for a basic referral introduction. You give the owner’s name and number; RAN Funding handles the funding process.
Will RAN Funding contact my client about anything else?
No. Only about the funding they asked for. No cross-selling and no marketing lists, and your client stays your client.
How am I paid?
A referral commission set in the written partner agreement, paid when the deal funds. Renewals on your referrals pay you as well. Nothing is paid on a file that does not fund.
Sources
- 2025 Report on Employer Firms: Findings from the 2024 Small Business Credit Survey — Federal Reserve Banks
- Court Enters $20.3 Million Judgment in FTC Case Against Merchant Cash Advance Operator Jonathan Braun — Federal Trade Commission
- California Financing Law: Commercial Financing Disclosures — California Department of Financial Protection and Innovation
Have a Client Who Just Got a Decline Letter?
Sign up in two minutes. We call within one business day and review the file.