If your company's circumstances change materially between the date of our offer and the date you wish to draw down the funds, you are required to notify us before proceeding. Drawing down against an offer where the underlying position has materially changed without disclosure can affect the validity of the loan agreement.
What counts as a material change?
Not every development requires disclosure, but the following typically do:
- A significant deterioration in revenue or the loss of a major contract — for example if turnover has dropped by 20% or more since the assessment was carried out (illustrative threshold, not a guaranteed figure).
- A new CCJ or default registered against the company.
- A change in company ownership or directorship, particularly where the incoming party has adverse credit history.
- The company entering a formal insolvency process, including administration, a CVA, or a winding-up petition being presented.
- The purpose of borrowing changing materially from what was stated on the application.
What we will do when you notify us
We will review the updated position and advise you promptly. In straightforward cases — for instance a minor, temporary dip in revenue that does not affect the affordability case — we may confirm the offer remains valid without amendment. In more significant cases, we may need to refresh the assessment, amend the terms, or in some cases withdraw the offer. We will always explain our reasoning.
Why disclosure protects your company
Proceeding to drawdown on the basis of circumstances that no longer reflect reality can create complications further along the loan term, particularly if a repayment difficulty arises and a question is raised about what was known at origination. Early, transparent disclosure is always the better course.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee required. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: How long is a loan offer valid?, Can I change the loan amount after receiving an offer?.