The specific requirements for a business loan can vary dependent on the lender, the type of loan, and the nature of your business. Before applying for a business loan, it’s advisable to thoroughly research the lender’s criteria and have all the necessary documentation prepared. This will speed up the application process and increase your chances of approval.
Your credit score is a 3-digit number that indicates how reliable you are at borrowing and repaying money. Lenders will look at your credit score Lenders will typically review the credit score and credit history of both the business and its owners before deciding whether to accept your application. It may also help them decide how much to offer you. A strong credit history demonstrates the ability to manage debt and repay loans.
Lenders often require a detailed look your business’s financial health. These could include profit and loss (P&L) statements, balance sheets, and cash flow statements. Lenders will always need to assess your business’s ability to generate sufficient cash flow to cover loan repayments. Positive and consistent cash flow indicates the business’s capacity to handle loan payments. It needs to show there is enough to meet the loan obligations while also covering operating expenses without any financial strain.
Many lenders may require collateral, which is an asset or property that can be seized and sold by the lender should you default on the loan. Collateral could be assets like real estate, equipment, inventory, or accounts receivable.
A detailed business plan outlines your company’s goals, operations, target market, competitive landscape, and financial projections. A well-prepared business plan demonstrates your understanding of the business and your strategy for growth, which can help the lender understand the viability of the loan.
Lenders may look at the industry expertise of the management team or board of directors before granting a loan. Being able to demonstrate industry experience, expertise or network can greatly enhance your chance of your loan application being successful. In businesses where specific industry or commercial experience are lacking, utilising professional advisory services can help reassure lenders.
Securing a business loan does not need to be a long-winded, laborious process. By having the above information ready, you can fast-track the process and increase your chances of success. It’s important to note that additional requirements might apply depending on the lender and the specific loan type.
We build strong relationships early in the process so we can understand our customer’s needs and circumstances. We pride ourselves on our empathy and integrity.
Especially in these difficult times, we strive to stay flexible. This adaptability is incredibly important and valued by our customers as we collaborate with them to find personalised solutions.
Capify was the first to offer small businesses alternative and accessible lending options. Our knowledge and expertise gives us an edge on newer lenders.
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Flexible funding from £10,000 to £3,000,000
No assets required as collateral
Lower rates when backed by business assets
Options available even with a poor credit history
Funds deposited within 24 hours of approval
Repay in 3–12 months with manageable terms
Keep day-to-day operations running smoothly
Bridge gaps between invoicing and payments
Pay suppliers on time and protect relationships
Spread the cost of your VAT bill over monthly payments
Combine multiple debts into one manageable repayment
Replace existing finance with better terms
Fund equipment, vehicles and machinery purchases
Short-term property finance while you arrange long-term funding
Purchase or refinance commercial property
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Comprehensive guides covering every type of business finance available in the UK.
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Answers to the most common questions about business finance and eligibility.
Tailored funding solutions for high-street and online retailers.
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