How to apply for a business loan

Decide how much you need and why

Before you open any application, pin down the amount and the purpose. Lenders ask both, and a vague answer slows everything down. Borrow for a specific, time-bound need — covering a payroll gap, buying stock ahead of a busy season, settling a VAT bill, or bridging late customer payments — rather than a round number that feels comfortable.

Size the facility to the job. Over-borrowing inflates your repayments and your total cost; under-borrowing means you're back applying again in a month. If the need is short-term and recurring, a flexible revolving facility may suit better than a lump-sum term loan. Work out what the money will earn or save you, so you can sanity-check the repayment against the return.

Check you meet the basic criteria

Most UK business lenders set a few threshold criteria before they look at anything else. For short-term working-capital finance these typically include:

• You're a UK-registered limited company (or LLP), trading and filing at Companies House.
• A minimum trading history — often 6 to 12 months, though some lenders go shorter.
• A minimum monthly or annual turnover.
• A UK business bank account in the company's name.

Credicorp lends to the company, not the director personally, and without a personal guarantee — so the assessment centres on the business's trading performance, not your personal assets. Confirm you clear the headline criteria before you apply, to avoid an avoidable decline marking your file.

Gather your documents in advance

Having everything to hand is the single biggest factor in a fast, clean decision. Assemble a folder containing:

• Bank statements — usually the last 6 to 24 months for your main trading account.
• Your most recent filed accounts and, ideally, up-to-date management accounts.
• Your Companies House number and registered details.
• Director ID and proof of address for KYC and anti-money-laundering checks.
• VAT returns or aged debtor/creditor reports if relevant to the facility.

Many modern lenders use Open Banking to pull statements securely with your consent, which removes the upload step entirely and gives them a live, tamper-proof view of your cash flow.

Complete and submit the application

With your figures and documents ready, the form itself is quick. Work through it in this order:

1. Enter your company details and the amount and term you want.
2. State the purpose of the funds in plain terms.
3. Connect your bank via Open Banking, or upload statements.
4. Complete director identity and AML verification.
5. Review the figures, then submit.

You can begin a Credicorp application at clients.credicorp.co.uk/register. Be accurate — inconsistencies between what you type and what your statements show are the most common cause of delay or referral to a human underwriter.

Understand the decision and the offer

After submission the lender runs underwriting: affordability checks against your real cash flow, a credit assessment, and fraud and AML screening. Decisions on short-term facilities can be fast — sometimes same-day — particularly where Open Banking gives instant visibility of your trading.

If approved, read the offer carefully before accepting. Note the total amount repayable, the fee structure, the repayment schedule, and any early-repayment terms. The headline figure is rarely the full cost. Our guide on how to read a loan offer walks through every line. Only sign once you're satisfied the repayments fit comfortably alongside your other commitments.

What to do if you're declined

A decline isn't the end of the road, and it isn't always about your credit. Lenders decline for affordability, thin trading history, sector policy, or simple data mismatches. Ask the lender for the main reason — they should give you a steer.

Resist the urge to fire off five more applications immediately; a cluster of credit searches in a short window can itself dent your profile. Instead, fix the underlying issue: clean up your bank conduct, file overdue accounts, reduce existing commitments, or wait until your trading history is a little longer. Then apply to a lender whose criteria genuinely fit your business. See how to handle a declined application for a structured approach.