How long do follow-up checks usually take?

Timescales vary: some lenders can complete checks in days while others take several weeks. Speed depends on the product complexity, whether valuations or legal searches are required, and how quickly you provide requested documents.

What happens after I receive a Decision in Principle, and what checks follow?

Q: What happens after I receive a Decision in Principle?

After a Decision in Principle, lenders perform full checks including identity and AML verification, financial document review, credit searches, asset valuations (if secured), and regulatory compliance checks. A DIP is conditional and does not guarantee final approval. Once all checks are satisfied, a formal offer is issued and, once accepted, the lender completes any legal steps before releasing funds.

Quick answer (start here)

A Decision in Principle (DIP) is an early, conditional indication that a lender or broker is likely to offer finance based on the information you provided. It is not a formal offer, and further checks — identity, affordability, credit, and documentation — are required before full approval and drawdown. Use a DIP to compare options and to move quickly once you decide to proceed.

What a Decision in Principle (DIP) actually means

A Decision in Principle is a provisional assessment that checks whether your business looks likely to meet a lender’s basic eligibility and risk criteria. It is typically based on a short application, credit data and the high-level figures you supply. Lenders use a DIP to reserve capacity or give you confidence to proceed without committing funds yet.

A DIP does not guarantee the final terms, and it will usually include caveats such as subject-to-documentation, valuation or further credit checks. Different lenders treat DIPs differently: some are purely automated and quick, while others are subject to broker review. Always read any conditions the DIP sets out so you know what comes next.

At Best Business Loans we help you get a DIP as part of a Quick Quote so you can assess likely options before a full submission. We do not provide the loan ourselves; we introduce you to lenders and brokers who may proceed to full checks. If you want to explore finance for green upgrades, you can also see targeted options like our sustainability loans for businesses.

The checks lenders commonly carry out after a DIP

After a DIP, lenders start a structured verification process to confirm the truth and completeness of your application. The most common checks are identity and address verification, company registration and business ownership confirmation. These checks reduce fraud and ensure the application is being made by authorised parties.

Lenders will review financial records such as management accounts, bank statements and VAT returns to assess trading history and cash flow. They might request projected cash-flow forecasts for applicants seeking growth or asset finance. The depth of financial interrogation depends on the product: invoice finance and asset finance often require different documents than working capital loans.

Credit searches are also standard, and these vary between a soft search (which doesn’t affect your credit file) and a hard search (which does). A hard search may be requested later in the process and can be visible on your business or director credit reports. It’s best to confirm with your broker or lender when and which type of credit check will be used.

Affordability, security and specialist checks

Lenders evaluate affordability to confirm you can repay the facility without undue stress to the business. This involves stress-testing cash flows and considering existing obligations such as other loans or hire purchase agreements. For directors, personal guarantees or director-level affordability may also be assessed.

If the facility is secured against assets, lenders will perform asset checks and valuations; for example, fleet finance requires vehicle valuations and equipment finance requires inspection details. Even where loans are unsecured, lenders may review trading contracts, debtor quality (for invoice finance) or stock levels (for asset-heavy businesses). These specialist checks ensure the collateral or underlying business risk is acceptable.

Regulatory and compliance checks can include anti-money laundering (AML) screening, beneficial ownership checks and sanctions screening. Lenders must comply with UK AML laws and FCA rules where applicable, and some checks are mandatory regardless of product type. Providing clear, accurate documentation at the start speeds this stage up significantly.

Timescales and communications you should expect

Timescales vary by lender, product and how quickly you supply requested documents. Some smaller or specialist lenders can move from DIP to full approval within a few days, while larger banks and complex facilities may take several weeks. Your broker or platform adviser should set realistic expectations when you submit the Quick Quote.

During the process you will typically receive status updates at key milestones: when documents are received, when credit checks complete, when approvals are issued and when legal checks start. If a valuation, inspection or external report is needed, expect additional lead time and separate fees in some cases. Always ask whether costs apply and who pays them before proceeding.

If a lender flags an issue — for example, a shortfall in profitability or an adverse credit entry — they will either request further information or decline the application. A decline at this stage does not always mean the end of the road; alternative lenders or structured offers may still be available through brokers in our network. We can help you find those alternatives if needed.

From full approval to drawdown and what Best Business Loans does next

Once all checks are complete and the lender is satisfied, you receive a formal offer or facility letter. This document sets out final terms, any conditions precedent and the required signatures. Read it carefully and ask your broker about clauses such as early repayment charges, covenants and reporting obligations.

After you accept the offer, practical steps to drawdown can include completing legal documentation, registering security (if any) and meeting any pre-drawdown conditions such as insurance or licences. For unsecured facilities the process is typically simpler and faster. Funds are released once all contractual and compliance requirements are satisfied.

Best Business Loans supports you through the DIP and full-approval journey by matching your enquiry to lenders and brokers suited to your sector and needs. We provide clarity on likely checks, expected timescales and typical documentation so you can prepare in advance. Start with a Quick Quote to obtain a DIP or eligibility check and move forward with confidence.

Key checks checklist

Identity & address verification (passport, driver’s licence, utility bills).
Company documents (certificate of incorporation, shareholder structure, director details).
Financial evidence (management accounts, bank statements, VAT returns, forecasts).
Credit searches (soft or hard) and director personal credit history.
Asset valuations/inspections and security documentation if applicable.
Regulatory checks (AML, sanctions, beneficial ownership).

What you can do to speed things up

Provide accurate and complete documentation at the first request to reduce back-and-forth delays. Prepare up-to-date management accounts and three months of business bank statements. Keep directors’ ID and proof of address ready so AML checks can be completed quickly.

Be transparent about existing finance, adverse credit, or unusual contracts so brokers can match you to lenders that are willing to consider your profile. If your project has specific requirements, such as sustainability upgrades, mention those in your Quick Quote so you can be connected to relevant products like sustainability loans. This targeted match avoids wasted time on unsuitable lenders.

Compliance, clarity and consumer protection

Best Business Loans is an independent introducer and does not provide regulated lending itself. We help you find lenders and brokers and explain the steps and checks you’ll face. We aim to ensure information we share is clear, fair and not misleading in line with FCA and ASA expectations.

When you request a Quick Quote we will only pass your details to selected lenders or brokers relevant to your enquiry. We encourage you to read any lender or broker documentation, and to check whether they are authorised by the Financial Conduct Authority for the product in question. If a lender is authorised, their financial promotions and conduct rules will apply to the regulated product.

Next step — get your Quick Quote and Decision in Principle

If you want to move forward, submit a Quick Quote to obtain an eligibility check or Decision in Principle. A DIP gives you the information to compare options and to prepare for the full application. Our matching system helps direct your enquiry to lenders suited to your sector, scale and purpose.

Need help preparing documents or understanding a lender’s conditions? Our team can guide you through the typical checks and timelines so you stay in control. Start your Quick Quote now and get matched with lenders and brokers who actively lend to UK businesses like yours.

About Best Business Loans

Best Business Loans uses AI-driven matching to introduce UK businesses to relevant lenders and brokers. We do not lend ourselves and we do not charge to submit a Quick Quote. Our service helps you save time by connecting you to vetted finance partners who can perform a DIP and follow-up checks.

Contact us at hello@bestbusinessloans.ai for help or submit your Quick Quote to begin a Decision in Principle. We aim to be transparent and helpful throughout your funding journey.

Learn more about targeted funding for greener projects on our sustainability loans page: Sustainability loans.