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Updated: 14 March 2025
If now is the right time to take your business to the next level with a loan, you’ll want to know what the application process involves. We’re proud of how quick our loan application process is. In fact, you can finish it in the time it takes to drink a cup of tea.
Here we talk you through how to prepare for a business loan, the key considerations when applying, and the process of getting a business loan, step by step.
Follow these steps to prepare your application and boost your chances of being approved.
Before you apply for a business loan, taking a moment to get your plans and documents in order will give you the best chance of being approved.
Your credit report will be checked when you apply for business finance, so get a copy of your report and make sure it’s accurate and up to date. We use reports from Experian and TransUnion.
The most favourable loan terms are generally reserved for loan applicants who have a good credit score, so it may be worth exploring how you can improve yours before you apply. If you’d like to learn more, we’ve put together some simple tips for improving your credit score here.
If you have outstanding business debts that can be settled, doing so before you apply could help your application. Healthy cash flow is also beneficial, so consider calling in any due payments too.
Depending on your circumstances, we may review your latest financial accounts as part of your application, so again make sure they are accurate. If it’s been over two years since you last filed your business accounts, we may require you to file fresh accounts.
On these accounts, you’ll be asked to show a detailed Profit & Loss statement, and you’ll also need to provide your balance sheet.
Be prepared to provide a clear explanation of what the funds will be used for. If it’s for a broad purpose like extra working capital, provide detail on how this will benefit your business.
You might also want to borrow to consolidate existing business debts. You can find more information on how to consolidate business debt here.
Make sure you assess how much money you need and what you can afford to repay. This will not only show your credibility during the assessment process, but will help you respond to any offers with confidence.
To help you with this, you can check out our business loan calculator, which provides a rough breakdown of how much your monthly repayments could cost for the amount you want to borrow.
Applying is quick and easy. You can check if you qualify in 30 seconds and see if you’re eligible without affecting your credit score.
If you’re eligible, apply online in seven minutes and get approved in as little as an hour.
Once you accept your offer we’ll deposit the money into your account – typically within 48 hours
We value your time so we’ve streamlined our loan application process to be fast, efficient and finished in the time it takes to drink a cup of tea.
We’ll ask for details about your business, such as turnover and number of employees, as well as the name, address and date of birth for your key shareholders. It’s worth having these on hand before you start.
Depending on your application, we may ask for the following documents:
Once you’ve completed your application, you could receive a decision and a personalised offer in as little as an hour. If you accept your offer, your loan will be paid straight into your bank account in a matter of days.
How is the decision-making process so fast?
We know a quick decision is one of the most important factors for business owners, so we’ve invested in our team and technology to give you a fast, fair, and accurate decision.
Our Credit Assessment team have decades of experience at top financial institutions, and they’re supported by cutting edge technology and over ten years of data from lending exclusively to small and medium-sized businesses.
What is your decision based on?
We look at a wide variety of factors when we assess your application, including your credit score, bank transactions and trading history.
We’ll assess what you can afford to repay based on how your business has done up to now, so you’re not dependent on future growth to repay the loan. You may get a higher or lower offer depending on our affordability assessment.
What happens when I receive my offer?
You’ll receive an email outlining your offer. It will include your approved loan amount, term, interest rate and monthly repayments. One of our Account Managers will also call you to discuss the offer and answer any questions you have.
How do I accept my loan offer and receive my funds?
Your offer email will include instructions of what to do next. You will need to log in to accept the loan terms and send a copy of an ID document and proof of address. The loan contract will be sent by email and can be signed electronically.
If a personal guarantee is required or there are any offer conditions, these will also need to be completed and returned.
Once these documents are completed, your loan will be paid into your bank account in as little as 24 hours.
Ready to apply? Check if you’re eligible today.
13/03/25: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.
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