Lenders do not simply check whether your company is profitable — they build a picture of the whole business before committing funds. Understanding what they prioritise helps you present your application in the strongest way.
Trading history and stability
A business that has been trading for at least twelve months, with consistent or growing revenue, is significantly easier to underwrite than a brand-new company. Lenders want evidence that your company has operated through at least one full trading cycle and can demonstrate predictable income. Very young companies face higher scrutiny because there is less data to work with.
Cash flow health
Profitability and cash flow are not the same thing. A business can be profitable on paper but routinely run short of cash between invoices. Lenders focus on whether real money moves through your account in a pattern that can accommodate repayments. Bank statements are often the most important document in an application for a short-term facility.
Existing debt obligations
If your company already services a significant loan, finance lease, or overdraft, a new lender will factor that into their calculation. The question is not whether you have existing debt — most businesses do — but whether total repayments remain proportionate to your monthly income. Disclosing existing facilities accurately speeds up the assessment; lenders almost always find them anyway.
Purpose of the borrowing
A clear, credible purpose — bridging a gap before a known payment arrives, purchasing stock, covering a specific invoice via Credicorp Slice — is more reassuring than a vague request for general working capital. You do not need to justify every pound, but being able to explain the need simply works in your favour.
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: How a business lending decision is actually made, Why trading history matters to business lenders.