How long does it take to receive funds after a Decision in Principle?

The short answer, plus what a Decision in Principle really means

Most UK businesses receive funds anywhere from 24 hours to 2 weeks after a Decision in Principle (DIP), depending on the finance type, underwriting checks, and how prepared your documents are. Unsecured business loans and merchant cash advances can often pay out within 24–72 hours after final approval. Asset finance, invoice finance set‑ups, and government‑backed facilities may take longer, typically 3–10 working days, and sometimes up to several weeks if legal or valuation steps are needed.

A DIP (sometimes called an Agreement in Principle, Indicative Offer, or Heads of Terms) isn’t a binding offer. It means a lender or broker believes you’re likely eligible based on initial information, subject to full underwriting, affordability checks, KYB/KYC, and any security or legal requirements.

Funds are released only after final approval and documentation is completed. The faster you provide complete and accurate information, the faster the lender can move from DIP to payout.

What happens between DIP and payout?

After a DIP, most providers run through four core stages: confirm identity and company details, verify financials and affordability, agree and complete legal/security documentation, and release funds. In many cases, these steps can be condensed into a swift process.

However, if a valuation, inter‑creditor consent, or legal review is required, allow extra time. Being proactive with documents and consent can cut days off your timeline.

Common terms you might see

Agreement in Principle (AIP) and Decision in Principle (DIP) usually mean the same thing. Heads of Terms or Indicative Offer confirms provisional terms, subject to due diligence and legal steps.

A Formal Offer or Credit Agreement is the binding document, and signing it is usually the last step before payout.

Typical funding timelines by business finance type

Different finance products have different processes and dependencies. Here are realistic UK timelines after a DIP, assuming responsive communication and complete documents.

Unsecured business loans and cashflow loans

Typical: 24–72 hours after final approval, sometimes same day.
What speeds it up: Open Banking consent, six months’ bank statements ready, up‑to‑date management accounts, clear purpose and amount.
What slows it down: Inconsistent statements, missing HMRC information, or needing director guarantor checks without ID/POA ready.

Merchant cash advance

Typical: 24–72 hours after verification of card sales.
What speeds it up: Clear card terminal statements, stable monthly turnover, and confirmed processing provider details.
What slows it down: Multiple card processors, seasonal fluctuations without supporting evidence, or mismatched bank deposits.

Asset finance, equipment finance, and vehicles

Typical: 3–10 working days after DIP; same week is possible for standard assets.
What speeds it up: Final supplier quotes, serial numbers/specs, proof of insurance, and consent from any existing debenture holder if needed.
What slows it down: Valuations on used/specialist kit, supplier changes, or complex documentation for cross‑border assets.

Invoice finance (factoring and discounting)

Typical: 5–10 working days to set up the facility; first funding draw can then arrive within 24 hours of submitting invoices.
What speeds it up: Aged debtor report, sample invoices/credit notes, contracts/POs, and confirmation of debtor terms.
What slows it down: Debtor concentration risks, contractual restrictions, or verification delays with your end customers.

Growth Guarantee Scheme (GGS) and other government‑backed loans

Typical: 1–4 weeks after DIP, due to eligibility checks and scheme documentation.
What speeds it up: Full financials (last filed accounts, recent management accounts, forecasts), detailed loan purpose and impact.
What slows it down: Complex group structures, multiple facilities needing inter‑creditor agreements, or limited trading history.

Refinance and consolidation (non‑property)

Typical: 5–15 working days, depending on the number of agreements being settled.
What speeds it up: Accurate settlement figures, lender consent, and clear payoff instructions.
What slows it down: Delays obtaining settlements, UCC/Companies House filings that need release, or missing asset schedules.

The biggest factors that speed up (or slow down) payout

Time to funds after a DIP depends on the lender’s process and how “funding‑ready” you are. The following checklists help you reduce friction and avoid last‑minute holdups.

Fast‑lane checklist you control

Identity and business verification: Company number, registered office, directors’ ID and proof of address to hand.
Banking data: Six months of business bank statements or Open Banking access granted quickly.
Financials: Latest filed accounts, up‑to‑date management accounts, VAT/PAYE status, any HMRC Time To Pay agreements.
Purpose evidence: Supplier quotes, equipment specs, invoice samples, or refurbishment plans for fit‑out finance.
Existing finance: List of current lenders, facilities, balances, and any security or debentures registered at Companies House.
Insurance: Proof of relevant policies when funding equipment or vehicles.

Common bottlenecks outside your control

Valuations and inspections: Required for certain assets or higher‑value equipment; book these early to avoid diary delays.
Legal reviews: Inter‑creditor deeds, personal guarantees, and debenture documents may need solicitor input.
Third‑party consents: Landlords, franchisors, or existing secured lenders may need to consent; their turnaround times vary.
Underwriting queues: Month‑end peaks can extend internal lender SLAs; supplying complete packs helps preserve your place in line.

Sector nuance: Hospitality and restaurants

Restaurants often include multiple funding purposes (fit‑out, equipment, working capital), which can lengthen timelines if documents are not coordinated. Preparing supplier quotes and landlord consents early is key.

If you run a restaurant or hospitality venue, explore sector‑specific guidance and options via our internal resource on restaurant finance: loans and finance for restaurants.

Realistic timeline examples you can benchmark against

Below are example scenarios that reflect common UK business finance journeys. Individual outcomes vary by lender, sector, and the completeness of your documents.

Scenario 1: Unsecured working capital loan (£50k–£250k)

Day 0: DIP issued based on revenue, trading history, and credit profile. Day 0–1: Open Banking granted and bank statements shared. Day 1–2: Final underwriting and director ID checks completed.

Day 2–3: Formal Offer signed electronically and funds released same day or next working day. Total elapsed time: 24–72 hours in straightforward cases.

Scenario 2: Asset finance for new machinery (£100k–£500k)

Day 0: DIP based on accounts and affordability. Day 1–4: Supplier quote finalised with serial numbers/specs and proof of insurance. Day 3–7: Underwriting approvals and any valuation arranged if required.

Day 5–10: Finance documents signed; supplier is paid or funds drawn. Total elapsed time: 3–10 working days for standard assets.

Scenario 3: Invoice finance setup

Day 0: DIP issued with outline facility limits. Day 1–5: Aged debtor report, sample invoices, and debtor verification completed. Day 5–10: Facility documentation agreed, notice of assignment filed where applicable.

Day 6–11: First drawdown within 24 hours of invoice submission. Ongoing draws typically arrive within hours or next day.

Scenario 4: Growth Guarantee Scheme loan

Day 0: DIP subject to eligibility and scheme criteria. Day 1–10: Submission of financials, forecasts, and purpose evidence; lender conducts viability assessment and scheme checks.

Day 10–20: Formal Offer and scheme documents issued and signed; funds release follows completion. Total elapsed time: 1–4 weeks.

Scenario 5: Refinance and consolidation of multiple facilities

Day 0: DIP based on affordability and refinancing goals. Day 1–7: Settlement figures obtained; inter‑creditor or debenture issues addressed. Day 5–12: New facility approved and documentation executed.

Day 7–15: Old facilities settled and new funds, if applicable, released. Total elapsed time: 5–15 working days.

How Best Business Loans helps you get funded faster

Best Business Loans does not lend money. We use data‑driven matching to connect established UK businesses with suitable lenders and brokers who are actively funding in your sector. That means less time knocking on closed doors, and more time engaging with relevant providers who can move quickly post‑DIP.

Our process is simple. Complete a Quick Quote, we analyse your profile, and introduce you to finance partners aligned to your needs. You remain in control, comparing offers, timelines, and terms to choose the right route for your cash flow.

What to expect after you submit a Quick Quote

Fast triage of your details against live lender criteria.
Guidance on documents needed to accelerate underwriting and payout.
Introductions to one or more providers who can progress your DIP to a Formal Offer.

Clear, fair, and not misleading

We aim to keep all information balanced and transparent. Funding times are estimates, not guarantees, and depend on your circumstances and the provider’s process.

Eligibility is subject to status, sector, and affordability. We do not currently support start‑ups, sole traders, franchises, property finance, or commercial mortgages.

Important information and eligibility

Best Business Loans operates as an independent introducer and does not provide financial advice. Any finance agreement is strictly between you and the chosen provider, and you should consider independent professional advice before committing.

To get started, complete your Quick Quote. It’s free to enquire, there’s no obligation, and it only takes a couple of minutes to see potential options.

Key takeaways

After a DIP, funding can arrive in 24–72 hours for unsecured loans and merchant cash advances; more complex facilities usually take 3–10 working days or longer.
A DIP is not a final offer; underwriting, KYB/KYC, and documents must be completed before payout.
Being “funding‑ready” with bank data, financials, and purpose evidence is the fastest way to shorten timelines.
Asset finance and invoice finance may require valuations, debtor verification, or legal steps that add days.
Best Business Loans matches you to relevant UK lenders and brokers, helping you move from DIP to funds with less friction.

FAQs: Decision in Principle to funds

Is a Decision in Principle a guarantee I’ll get the money?

No. A DIP is an initial indication based on limited information. Funding requires full underwriting, documentation, and final approval.

What documents speed up funding after a DIP?

Typically: six months’ bank statements or Open Banking access, filed and management accounts, ID/POA for directors, supplier quotes, insurance, and details of existing finance or security.

Can I get same‑day business funding after a DIP?

Sometimes, yes for smaller unsecured loans and merchant cash advances, if all checks and e‑signatures are completed early in the day. Not all cases qualify.

Why do asset and invoice finance take longer?

They can involve valuations, legal documents, debtor verification, or inter‑creditor agreements. These steps protect both parties and can add days.

Do government‑backed loans take longer to pay out?

Often, yes. Schemes like the Growth Guarantee Scheme include specific eligibility and documentation, which can extend timelines to 1–4 weeks.

How can Best Business Loans help me move faster?

We match you with providers suited to your sector and needs, and we guide you on the “funding‑ready” documents that accelerate underwriting and payout.

Updated: October 2025 • Author: Best Business Loans Editorial Team • Jurisdiction: United Kingdom