Applications can be declined for a wide range of reasons at any stage in the application process. There are several factors that we must consider before we make a decision.
Mollie cannot share detailed decline reasons due to financial regulation and risk management requirements. Typically however, applications are declined based on:
- The trading history or business sector does not meet the requirements under the acceptance policy.
- The commercial or consumer credit scores do not meet the minimum threshold.
- The commercial history may include payments in default or arrears.
- You received funding recently and cannot renew your application yet.
- The credit score of the business and/or the Ultimate Beneficial Owner (UBO)
How is creditworthiness assessed?
Creditworthiness is based on a combination of factors related to the business and Ultimate Beneficial Owner (UBO) applying for Capital. These elements help lenders assess financial risk and ensure responsible lending. They include:
- A soft credit check on the business
- A soft credit check on an Ultimate Beneficial Owner (UBO).
- Payment performance with Mollie
- Existing debt levels
- Repayment history (if Capital previously funded by Mollie)
How does Payments performance with Mollie affect creditworthiness?
We review changes in payment volume and frequency, chargeback rates, and consumer complaints. These factors can affect the assessment of your business's financial stability and may influence the outcome of your application.
Why was my top-up application denied?
A top-up application can typically be made once 55% of the current financing is repaid. However, it can be that the current repayments are progressing slower than expected. In those cases we believe it's too early to provide additional funds. We recommend waiting until your current financing is fully repaid before reapplying.
Why was my application declined after receiving offers?
Final decisions are based on the latest data Mollie has. It can happen that recent changes in your account have affected your eligibility and the offers we made are no longer valid anymore. These changes could include shifts in your financial status, credit score, or transaction history, which are crucial factors in our assessment.
Do you have a question about Capital? Feel free to contact our Capital Support team.
Read more