Lenders receive hundreds of applications. The ones that get approved fastest — and on the best terms — are the ones where the business owner has clearly thought about their requirement, gathered the right information, and presented it clearly. This guide walks you through exactly how to do that.
Step 1: Be clear about what you need and why
Before gathering a single document, you need to be able to articulate three things clearly: how much you want to borrow, what you need it for, and how you'll repay it. Lenders call this the "three Ws" — want, why, walkback. Vague requests ("I need some working capital") are red flags; specific ones ("£150k to fund a confirmed new client contract requiring three additional staff and equipment") build confidence.
Step 2: Gather your core documents
Full statutory accounts, not just the abbreviated version. If these are more than 9 months old, you'll also need current management accounts.
All accounts used for business transactions. Lenders look at cash flow patterns, not just average balances.
P&L and balance sheet to the most recent month available. The more recent the better.
Passport or driving licence plus a recent utility bill or bank statement. All directors with significant shareholdings will be required.
Loan agreements, hire purchase schedules, overdraft facilities. Lenders need to see the full debt picture.
Step 3: Check your credit files
Before a lender checks your credit, check it yourself. Look at both the business credit file (via Experian Business, Creditsafe or similar) and your personal credit file. Identify any issues, understand their age, and be prepared to explain them proactively. Surprises slow down deals; explanations you've prepared in advance do not.
Step 4: Know your numbers
Be able to answer these questions without hesitating:
- → What is your annual turnover and net profit margin?
- → What are your total existing monthly debt obligations?
- → What is your average monthly bank balance?
- → Do you have any assets that could be used as security?
Step 5: Work with a broker
An experienced commercial finance broker does two things that individual business owners cannot easily do themselves: they know which lenders are most likely to approve your specific profile, and they know how to package and present your application to maximum effect. Both significantly improve outcomes.
Our brokers will review your application before it goes anywhere near a lender. We'll identify gaps, coach you on how to present your business, and only approach the lenders most likely to say yes.
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