Documents needed for a business loan: am I ready?
The documents needed for a business loan are usually your latest accounts, bank statements, and ID with proof of address. Statements are often 6 months for a business loan, and usually 3 for asset finance. Answer a few questions for your own list, with why each is asked.
Your list
This is the whole list. Some lines may not apply.
Why they ask: they show the money coming in and going out.
Don't have them? Download them as PDFs from online banking.
Why they ask: they show how a newer business is doing.
Why they ask: they show how the business did over a full year.
Don't have them yet? Your 6 months of statements help instead.
Why they ask: they show what the business has earned.
At least 2 people, if there is more than one. And anyone who owns more than 15% of the business.
Why they ask: to stop fraud.
Why they ask: to stop fraud.
Why they ask: with no long record, the plan shows how the business will pay.
Why they ask: over £150,000, most lenders want to see how the business is doing now.
Don't have them? Your accountant can run them.
Why they ask: they show the VAT you pay and claim back.
Why they ask: it shows how much is due, and by when.
Why they ask: lenders want to know where the money goes.
Why they ask: it shows where the money to pay will come from.
Not in writing yet? Ask your customer to confirm the work in an email.
For a vehicle, at least the registration and mileage.
Why they ask: the lender pays the seller.
No deposit? Some agreements need none.
Why they ask: most lenders lend up to 80% of its value. Some go to 100%.
Why they ask: it shows a clear trail of who owns it.
Lost the invoice? Some lenders take a letter from your accountant to say the business owns it.
Why they ask: it gives the vehicle's details.
Why they ask: the old finance is paid off first.
Why they ask: it shows you can meet the payments.
Why they ask: it shows what you already pay each month.
Good to know
- Most lenders start at £25,000, and a smaller number at £15,000. A few look below that, case by case, when there is a clear reason.
- For a sole trader or a partnership of up to 3 partners, £25,000 or less is regulated. Extra rules apply.
- High street lenders usually want 2 years of trading. Fewer lenders look at newer businesses.
- Owning a home helps, but it is not the only way. Clean credit helps, but it is not a must.
Get these sorted first
- Get your finance in place before you talk to the seller.
- Expect to be asked for a personal guarantee.
- Had a credit problem? Say so at the start.
Our team are finance brokers in Scotland. We help businesses across the whole UK.
What is a personal guarantee?
A personal guarantee is a promise to pay if the company cannot.
Should I go to a lender or a broker?
You can go to a lender yourself, or use a broker. A broker sends your case to the lenders it suits. Either way, this same list gets you ready.
Frequently asked questions
What documents does a lender need for a business loan in the UK?
Most ask for business bank statements, often 6 months for a loan, and your latest accounts. They also want photo ID and proof of address for the directors. To buy an asset, add the quote. To release cash, add proof you own it.
How do I know my business is ready to apply?
Your business is ready when your documents are together, and you know what the money is for.