Business Loans
28 January 2025

Understanding Business Loans: What Lenders Really Look For

A practical guide to the key criteria lenders use when assessing business loan applications in the UK.

The Lender's Perspective

When you apply for a business loan, lenders are essentially asking one question: can this business repay us? To answer that, they look at several key areas.

Key Assessment Criteria

Trading History

Most lenders want to see at least 12-24 months of trading history. Startups can still access funding, but options may be more limited.

Financial Performance

Lenders will review your filed accounts, bank statements, and management accounts to assess profitability and cash flow.

Credit Profile

Both business and personal credit profiles are reviewed. CCJs, defaults, and missed payments will affect your options.

How Limitra Can Help

Our experienced brokers can review your profile and match you with lenders most likely to approve your application, saving time and protecting your credit score.

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