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Debt service cover ratio = cash available for debt ÷ annual repayments — a core lender affordability test.
Step 1: check the basic criteria
Confirm you meet the lender's threshold conditions — usually being a UK limited company, a minimum trading period, a minimum turnover, and any sector rules. Fail these and the application stops before affordability is even considered. See affordability vs eligibility.
Step 2: use a soft search where offered
Where a lender offers an indicative decision via a soft search, use it — it checks your chances without leaving a footprint visible to others. This is the safe way to gauge eligibility before committing to a full application.
Step 3: sanity-check affordability
Once eligible, run your own cover ratio for the amount you want, to confirm it is genuinely affordable. There is no point applying for a figure you cannot service. See checking affordability.
Step 4: apply only where you have a real chance
Submit a full application — which leaves a hard search — only where you meet the criteria and the numbers work. Scattering applications damages your score for nothing. See credit checks explained.
Confirm the numbers work
Use the calculator to check affordability before you commit to an application.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
How do I check eligibility before applying for a loan?
Confirm you meet the lender's basic criteria — company type, trading period, turnover and any sector rules — use a soft search where offered to gauge your chances without a mark, then sanity-check affordability.
Why check eligibility before applying?
Because a full application leaves a hard search on your file, and several can dent your score. Confirming you meet the criteria first avoids a wasted application that was never going to succeed.
Can I check without affecting my credit?
Often yes, where the lender offers an indicative decision via a soft search, which leaves no footprint visible to other lenders. Use it to gauge eligibility before committing to a full, hard-search application.
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