Documents you need for a business loan application: a checklist

Most lenders ask for some or all of the following:

• Business bank statements: usually the last three to six months, for all business accounts. Many lenders can view these through open banking.
• Filed accounts: the most recent one to three years, depending on the lender and loan size.
• Management accounts: a recent profit and loss statement and balance sheet if your last year-end is more than a few months old.
• Director ID: passport or driving licence for each director, LLP member or significant shareholder.
• Proof of address: recent utility bill or bank statement for directors' home addresses.
• Company details: registered number, trading address, ownership structure and details of any parent or linked companies.

• Aged debtor and creditor reports, showing who owes you money and who you owe.
• A schedule of existing borrowing: lender, balance, monthly payment and end date for each loan, lease or facility.
• VAT returns, which help show turnover since your last year-end.
• Cash flow forecasts, especially for growth, acquisition or larger loans.
• Details of HMRC arrears or Time to Pay arrangements, if any.

Depending on the product, lenders may also ask for:

• Asset finance: a supplier quote or invoice showing the make, model, age and price of the equipment.
• Secured business loans: details of the business assets offered as security, such as a fixed asset register, plus any charges already registered at Companies House and, where another lender holds a debenture, its consent.
• Invoice finance: an aged debtor list, customer contracts or terms, and sample invoices.
• Acquisition finance: heads of terms, the target's accounts, due diligence reports and your business plan.
• Personal assets and liabilities statement: sometimes requested where directors are giving a personal guarantee.

Lenders want to understand what the money is for and how it will be repaid. A short written summary helps. Cover how much you need, what it will fund, how it benefits the business and how repayments fit into your cash flow. For larger requests, a brief business plan with assumptions is worth preparing.

1. Gather documents before you apply, in PDF format where possible, with clear file names.
2. Make sure bank statements are complete and cover all pages and accounts.
3. Check that figures in your accounts, management accounts and bank statements tell a consistent story.
4. Prepare explanations for anything unusual: a one-off dip in turnover, a large transfer, a past credit issue.
5. Make sure Companies House filings are up to date, and that every director or LLP member has completed Companies House identity verification.
6. Keep a note of which lenders you have already applied to.

LLPs file accounts at Companies House, so the core checklist applies, with members in place of directors. Lenders may also ask for the members agreement. Partnerships of four or more partners usually provide accounts prepared by their accountant, the partnership agreement and ID for each partner, and lenders often look closely at the partners' own finances.

A company that has traded for 12 months may have filed only one set of accounts, or none yet if its first year-end has only recently passed. Up-to-date management accounts, VAT returns, a full run of bank statements and a short cash flow forecast help lenders see how the business is performing now.

• Missing pages or accounts on bank statements.
• Out-of-date accounts with no management figures to bridge the gap.
• Director ID that does not match the address on the application.
• Unexplained transactions or existing borrowing not disclosed upfront.
• Slow responses to follow-up questions from underwriters.

You do not need everything on this list before you start. For most unsecured applications, recent bank statements, the latest filed accounts and director ID are enough for a lender to give an initial view; the rest is requested as the application progresses.

Welcome Finance is a commercial finance broker for limited companies, LLPs and partnerships of four or more partners. After a 60-second eligibility check, which will not affect your credit score, we tell you which documents the most suitable lenders for your case are likely to need, so there is less back-and-forth once an application is under way.