Business loan requirements: what lenders ask for

Business loan requirements are the conditions a lender sets before it will lend: who can apply, what evidence of the business it needs and what comfort it wants that it will be repaid. There is no single national list, because each lender writes its own criteria.

In practice the questions fall into four groups: eligibility, documents, credit and security. The sections below take them in turn. The Start Up Loans guidance puts the point plainly: each lender may have different eligibility requirements, so always check the lender’s own criteria before you apply.

Generally you need to be at least 18 and a UK resident, and the loan must be for business purposes. Start Up Loans guidance gives those two as the general baseline and says lenders may also look at your credit score, your business plan and any collateral.

The same guidance says some banks may exclude particular industries or sectors, because of perceived risk or industry-specific rules. A lender can also set its own minimums for how long you have traded or how much the business turns over. Those are criteria to read on the lender’s own page, and we do not state figures for them here.

It also matters what kind of borrower you are. Lending to a limited company sits outside the Financial Conduct Authority’s consumer credit rules. The FCA says business lending of £25,000 or less to sole traders and small partnerships can fall inside them, and lending above £25,000 generally falls outside. If you are a sole trader, our guide to loans for sole traders covers the difference.

Lenders ask for documents that show what the business does, how it is performing and how it will repay. Requirements differ between lenders, so treat the list below as a preparation guide and not a checklist every lender will use.

The first four come from the Start Up Loans guide to loan applications. Bank statements and identification are also commonly requested, so have them to hand. If you need a refresher on the statements, see our guides to the profit and loss account and the balance sheet, or read how to write a business plan that a lender can follow.

Lenders also ask what the money is for. Expect to give a specific purpose and an amount you can justify.

Lenders check the business’s credit record and often the owners’ personal records too, to see how reliably debts have been repaid. The British Business Bank says a business credit report covers the business’s payment history and any outstanding debt, and that your score can affect how much you can borrow, your interest rate and whether you are approved at all.

• Business credit report: payment habits, the credit score and record, public records and the business’s financials. Our guide to business credit scores explains what feeds them.
• Personal credit file: the Information Commissioner’s Office says it mostly shows how you have kept up credit and utility accounts, and also includes public records such as county court judgments. Directors, sole traders and guarantors may be assessed on theirs.
• County Court Judgments: GOV.UK says a CCJ stays on the Register of Judgments, Orders and Fines for 6 years, and that banks and loan companies use it when deciding whether to lend. See what a CCJ means for borrowing.

The ICO also notes that credit reference agencies do not keep blacklists and do not tell a lender whether to offer you credit. That decision is the lender’s. Our guide to soft and hard credit checks explains how searches appear on your file.

It depends on the loan. A secured loan is backed by property or assets you own, while an unsecured loan needs no asset but, according to the British Business Bank, lenders typically require a personal guarantee instead.

The FCA recorded in September 2026 that small-business representatives said personal guarantee requirements can be a significant barrier to finance, and that guarantees are commonly required where businesses lack collateral. Read how personal guarantees work before you sign one, and consider taking legal advice.

Yes, schemes publish their own rules. Start Up Loans, for example, asks that you live in the UK, are 18 or over and have or plan to start a UK business that has been fully trading for less than five years. The Growth Guarantee Scheme works differently: the guarantee is given to the lender, and the borrower always remains 100% liable for the debt.

Our guides to government-backed business loans and the Growth Guarantee Scheme cover the published terms. A newer business may also want to read about start-up business loans.

Not meeting one lender’s requirements does not rule out every lender, because criteria differ and so do products. You can change what you ask for, change who you ask or improve the application first.

• Ask for a different product, such as asset or invoice finance, where the lender’s security is the asset or the invoices.
• Reduce the amount, or offer security if you can afford the risk.
• Fix what you can: correct errors on credit files, bring accounts and filings up to date and settle outstanding judgments.
• Read business loans with bad credit if your record is the sticking point.
• Build a cash flow forecast that shows how repayments fit.

Capzy is a credit broker, not a lender, and is paid by the lender. We introduce businesses to lenders whose criteria suit them, which saves you guessing, and the lender directory shows what each type of finance involves.

You can check your funding options with a soft search that does not affect your credit score. Any application to a lender may involve a hard search, and every decision is subject to status and lender criteria. We cannot say in advance whether a particular lender will lend to you.