When your company applies for a business loan or credit facility, the lender runs a structured assessment — not a gut feeling. The decision combines financial data, trading evidence, and the specific purpose of the borrowing.
What the lender reviews first
The starting point is almost always your company's filed accounts or management accounts, bank statements, and Companies House record. Lenders want to see that the business is actively trading, generating revenue, and meeting its existing obligations. A clean filing history and consistent turnover signal a company that is well-managed.
How the application is assessed
Underwriters look at three broad areas: capacity (can the business service the debt from cash flow?), character (does the company have a track record of repaying on time?), and capital (what does the balance sheet show?). For a short-term product like a Business Loan or a revolving facility like Credicorp Flex, the assessment focuses heavily on near-term cash flow rather than long-range projections.
The decision outcome
Most decisions result in an approval, a conditional approval subject to further information, or a decline. A conditional approval might ask for up-to-date bank statements or a clarification on an unusual transaction. Lenders are not obliged to explain a decline in full, but many will give a broad reason so you can address it before reapplying.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: What lenders look for in a business borrower, How business lending affordability is assessed.