Are soft searches used initially, with hard searches only when we proceed?
Short answer: yes, in most cases
For the majority of UK business finance enquiries, providers begin with a soft search to check eligibility without affecting your credit score, and only run a hard search if you choose to proceed with a full application. That is the approach our partners typically adopt, and it’s how we aim to handle enquiries routed via Best Business Loans. Final credit-check methods are set by each lender or broker, and you’ll always be asked for consent before any hard search.
Below, we explain how soft and hard searches work for UK business finance, when each is used, and what to expect when you submit a Quick Quote through BestBusinessLoans.ai. You’ll also find practical steps to reduce unnecessary credit footprints and common FAQs.
Updated: October 2025
Understanding soft vs hard searches
What is a soft search?
A soft search (also called a soft credit check or eligibility check) lets a finance provider view limited information from a credit reference agency to assess basic eligibility. It does not impact your credit score, and it is visible only to you on your own credit file. Soft checks are widely used at the pre-qualification stage for business loans, asset finance, invoice finance, and other commercial funding.
What is a hard search?
A hard search is a full credit check recorded on your credit file that may be visible to other lenders and can temporarily affect your score. Lenders typically conduct a hard search when you submit a full application and they need to make a lending decision. Hard checks can be on the business, the directors/guarantors, or both, depending on the product and structure.
When is each type used?
Most providers will use a soft search initially to gauge eligibility and indicative terms. If you confirm you want to proceed with a specific offer, the provider may then run a hard search as part of their final underwriting. This two-step approach helps you compare options without adding multiple hard footprints to your file.
Which credit reference agencies are used?
In the UK, common credit reference agencies (CRAs) include Experian, Equifax, and TransUnion. Business lenders may also use bureaux that specialise in commercial data and Companies House records. Some providers also use Open Banking, bank-statement analytics, and trade-credit data to support a soft-search decision.
Key point for UK SMEs
Soft search first, hard search later is now standard for many commercial finance journeys. It protects your credit profile while still giving providers enough early insight to assess eligibility.
How Best Business Loans handles checks
No hard checks from us at enquiry stage
Best Business Loans is an independent introducer. We do not lend, and we do not run hard credit checks. When you complete our Quick Quote form, our AI uses your provided details to match you with suitable lenders or brokers in our network. This initial match does not leave a footprint on your credit file.
Soft search with consent via our partners
Once matched, a partner may request permission to run a soft search to refine indicative terms and verify eligibility. Soft searches at this stage are designed to be credit-score neutral and are visible only to you. You remain in full control and can decide whether to share further information or proceed.
Hard search only if you proceed to a full application
If you choose to move forward with a specific funding offer, the provider may run a hard search as part of their underwriting. You will be told before a hard search happens and asked for consent. The provider will also explain who will be searched (the company, directors, or both) and why.
Products and typical search behaviour
- Unsecured term loans and cashflow loans: soft search initially; hard search when you formally apply.
- Asset finance and equipment finance: soft search and asset-led assessment; hard search on final underwriting.
- Invoice finance: emphasis on debtor book quality and ledgers; hard search may be used when finalising facilities.
- Vehicle and fleet finance: soft checks for eligibility; hard checks at proposal acceptance.
Important information and compliance notice
We aim to ensure all information is fair, clear, and not misleading in line with UK standards. Best Business Loans does not provide financial advice, and we do not guarantee approval, specific terms, or the lowest rate. Credit checks, affordability assessments, and decisions are at the discretion of the lender or broker you choose to engage.
Credit impact, transparency, and how to minimise footprints
Do soft searches affect my credit score?
No. Soft searches do not affect your credit score and are visible only to you. They help you compare options without committing or leaving multiple hard footprints.
Do multiple hard searches cause issues?
Too many hard searches in a short period can concern lenders and may impact your score. That’s why we encourage a single, well-chosen application after soft-search pre-qualification rather than multiple full applications.
Personal vs business credit checks
Limited companies are often assessed on both business credit data and directors’ personal credit, especially for unsecured loans or where a personal guarantee is requested. Partnerships and sole directors may face personal searches more frequently, depending on the product and risk profile.
How to reduce unnecessary hard checks
- Use soft-search friendly routes for early eligibility checks.
- Provide accurate information upfront to avoid reprocessing.
- Share bank data via Open Banking when requested, as it can support a soft-search decision.
- Apply for one carefully selected offer rather than several at once.
Transparency and consent
You should always know whether a provider is about to run a soft or hard search. Reputable lenders and brokers will explain what they need, why they need it, and request your explicit consent before proceeding with a hard search.
What to expect step-by-step
1) Quick Quote with Best Business Loans
Complete our short form with your business details, funding purpose, and target amount. No hard check occurs at this stage. Our AI analyses your profile and matches you to relevant providers in our network.
2) Soft-search eligibility and indicative terms
With your consent, a matched provider may run a soft search to validate eligibility and provide non-binding, indicative terms. They may also request recent bank statements (often via Open Banking), management accounts, or VAT returns to fine-tune the assessment.
3) Tailored options and documentation
You’ll typically receive an outline of potential structures, terms, and any security or guarantees needed. Provide accurate documents early to keep the process efficient and reduce the likelihood of repeated checks.
4) Proceeding to full application
If you choose to proceed with a specific option, the provider will confirm any hard search requirements in advance and ask for your consent. They may conduct anti-fraud checks, ID verification, and affordability assessments at this stage.
5) Approval, signing, and funding
On approval, you’ll receive final terms and documentation to sign. Funding is typically released after final checks are complete and security (if any) is perfected. Timelines vary by product and provider, but soft-search-first helps keep the journey smooth.
Ready to explore funding options the smart way? Get started now with a free, no-obligation Quick Quote.
Practical FAQs and sector notes
Is a soft search always possible?
Soft searches are common, but not universal. Some specialist or higher-risk scenarios may require earlier hard checks, especially where security or complex underwriting is involved. You’ll be told clearly if that’s the case and why.
What data is checked in a soft search?
Soft searches generally review headline credit indicators, payment histories, and flags from CRAs. Providers may also use Open Banking to assess real, recent cash flow without needing a hard check at the pre-qualification stage.
Will my suppliers or clients see these checks?
No. Credit searches are between you, the CRA, and the provider. Soft searches are visible only to you on your credit file; hard searches are visible to other lenders but not to your customers or suppliers.
What about professional services firms?
Professional practices often use soft-search-first for facilities such as working capital, tax funding, or equipment finance. For example, our partners regularly support practices seeking loans for solicitors, with initial soft checks where appropriate before any formal application.
Does Best Business Loans guarantee approval or rates?
No. We are a matching and introduction platform, not a lender. We connect you with providers that are active in your sector and likely to consider your profile, so you can compare credible options quickly and make informed decisions.
Key takeaways
- Most UK business finance providers start with a soft search and only run a hard search if you proceed.
- Soft searches do not impact your credit score; hard searches can, so apply selectively.
- Consent and transparency are standard: you should know what type of search is happening and why.
- Provide accurate information and use Open Banking where requested to reduce repeat checks.
- Best Business Loans introduces you to suitable providers; we don’t run hard checks or lend directly.
Why use BestBusinessLoans.ai?
- AI-driven matching to suitable lenders and brokers for your circumstances.
- Soft-search-first journey where possible to protect your credit profile.
- Sector-aware introductions across manufacturing, logistics, hospitality, healthcare, professional services, and more.
Submit your free Quick Quote to check eligibility fast. No obligation, no hard credit check from us, and your data is handled securely and confidentially.
Important notices
- Best Business Loans is an independent introducer. We do not offer loans directly and do not provide financial advice.
- We do not currently support start-ups, sole traders, franchises, property finance, or commercial mortgages.
- Any examples or timelines are illustrative only; underwriting, checks, and terms are set by each provider.
- All financial promotions should be fair, clear, and not misleading. Always review costs, fees, security, and obligations before committing.
Next step: Get your no-obligation Quick Quote and see which providers can help today.