- Typical timescale
- 2–6 weeks depending on structure
- Loan size range
- £10k – £5m
- Common structures
- Secured term loan, unsecured loan, revolving credit
- Accounts usually required
- Latest 2-3 years filed accounts
Company and financial documents
Lenders start with the basics: filed accounts, management accounts if year-end is more than a few months old, and recent business bank statements. Having these ready as PDFs, rather than promising to send them later, is one of the simplest ways to speed up a decision.
- Filed accounts, last 2-3 years
- Management accounts if recent
- 3-6 months business bank statements
- Details of any existing business debt
Purpose and use of funds
Whether the loan is for working capital, acquisition, equipment or expansion, lenders want a clear, specific explanation rather than a general statement. A one-page summary of what the money achieves and how it supports repayment carries real weight with underwriters.
Security and personal guarantees
Secured loans typically require a debenture over company assets or a charge over property; unsecured loans nearly always ask directors for a personal guarantee. Understanding which structure suits your business avoids surprises late in the process.
Director and shareholder information
Expect ID and proof of address checks for all directors and significant shareholders, plus a brief credit check. Any historic credit issues are best disclosed upfront with context, since lenders react far more negatively to issues discovered later than to ones explained honestly at the outset.
Frequently asked
Do I need a business plan for a business loan?
Not always — established businesses with clean accounts often just need a short narrative on use of funds, whereas newer businesses or larger requests typically benefit from a full plan.
Will I need to give a personal guarantee?
For unsecured lending, in most cases yes. Secured lending against company assets sometimes avoids the need for a full guarantee, depending on the lender.
How much can my business borrow?
This depends heavily on turnover, profitability and existing debt, but lenders commonly assess affordability against a multiple of monthly cash generation rather than turnover alone.
What if my last set of accounts shows a loss?
A single loss year isn't automatically disqualifying if it's explained and recent management accounts show recovery, but it does narrow the panel of lenders likely to approve.
How quickly can funds be released?
Unsecured facilities can sometimes release funds within days of approval; secured loans involving legal charges typically take two to four weeks due to the legal work involved.
Prepare your business loan application
Share your accounts and funding purpose and we'll tell you honestly which lenders are likely to say yes.
Related reading
Situations this applies to
Looking for local coverage? Business Loans by town · All areas we cover