What lenders look for, in plain English
| Item |
What it proves |
Typical evidence |
| Identity checks and ownership |
You are who you say you are, and the lender knows the owners and controllers |
Photo ID and proof of address for directors and PSCs, plus company details. Lenders must complete customer due diligence under UK rules (CDD). |
| Affordability and cash flow |
Your ability to repay on time |
Business bank statements, often up to the last 3 to 6 months. Many lenders accept Open Banking feeds or PDFs. See examples from Funding Circle and iwoca. |
| Trading performance |
Profitability and balance sheet health |
Latest full, unabbreviated accounts and year to date management accounts. See British Business Bank guidance. |
| Credit standing |
Track record of paying on time |
Personal and business credit checks are common. The British Business Bank notes lenders often review personal credit too here. |
| Purpose and repayment plan |
Why you need the funds and how the loan will be repaid |
A short use of funds statement and a simple monthly cash flow forecast. Many banks also like to see a one page business summary, sometimes called a bank pack. |
| Security, if needed |
Back up for the lender if things go wrong |
Details of assets, or a personal guarantee for unsecured loans. Banks like Lloyds describe the kind of information they assess. |
If you are applying under the government backed Growth Guarantee Scheme, be ready to share management accounts and up to three years of historic accounts. Example requirements are shown by Lloyds Bank.
Your lender friendly document checklist
Core financials
- Business bank statements for the last 3 to 6 months
- Latest filed accounts, plus full, unabbreviated PDFs
- Year to date management accounts, P&L and balance sheet
- Aged debtors and creditors reports
- Cash flow forecast for the next 12 months
Identity and company
- Photo ID and proof of address for directors and beneficial owners
- Company number, registered address, and SIC code
- Proof of business address if different from registered office
Tax and filings
- Recent VAT returns, if registered
- Last CT600 and HMRC payment plan if applicable
- Companies House filings up to date
Purpose and structure
- Use of funds summary, for example working capital or equipment
- Existing debts schedule, lender, balance, monthly payment
- Security schedule if relevant, assets, estimated values
Tip, keep originals as separate PDFs. Lenders often reject screenshots or spreadsheets for statements. Most banks let you download proper PDFs from online banking.
Make your pack easy to read
- Match the numbers. Reconcile your management accounts to your latest bank statement month. That avoids questions about timing differences.
- Use clear file names. For example,
ABC-Ltd_Bank-Statements_Apr-to-Sep-2025.pdf and ABC-Ltd_Management-Accounts_YTD-Sep-2025.pdf. - Check addresses and names. The company name and address on statements should match Companies House and your application.
- Explain any spikes. Add a note for one off costs, seasonal dips, or late customer payments.
- Credit housekeeping. Check personal and business credit before you apply. Correct obvious errors first.
Open Banking can speed things up
Many lenders now accept Open Banking feeds, which share read only transaction data securely and cut out paperwork. This allows faster affordability checks and can reduce the back and forth on missing statements. See background from Open Banking Limited and the FCA’s recent note on open finance here.
Step by step, from idea to offer
- Define the ask. Amount, term, purpose, and a simple repayment plan.
- Prepare your pack. Use the checklist above. Aim for clean PDFs and a one page summary.
- Sense check affordability. Your forecast should show headroom after loan payments.
- Apply to the right lenders. Match the product to your need, for example term loan, credit line, asset finance, or invoice finance.
- Respond quickly to underwriters. Keep your accountant or bookkeeper in the loop so follow up requests are answered fast.
Copy and paste, your one page lender summary
Business: Company name, number, trading since, sector.
Request: £amount for term months, purpose, for example working capital for seasonality, new van, stock build.
Snapshot: Last year revenue £x, EBITDA £y, YTD revenue £x, cash at bank £z.
Repayment plan: Monthly payment £p. Forecast average monthly net cash flow £q with r percent headroom.
Security: Unsecured with personal guarantee, or secured against asset.
Attachments: Bank statements 6 months, latest filed accounts, YTD management accounts, aged debtors and creditors, VAT returns, forecast.
Need help tidying your numbers?
Good bookkeeping makes applications painless. Our partner Hardy Accounting prepares monthly management accounts and reconciliations that map cleanly to what lenders review. If you want a second set of eyes before you apply, speak to them.
Helpful references
