What documents and information are needed for an eligibility check or DIP?

Short answer: what you’ll usually need

An eligibility check or Decision in Principle (DIP) is a preliminary assessment that helps lenders or brokers gauge whether your business is likely to be approved and on what terms. It typically requires basic business details, key financial information, and permission to run a soft credit check or connect via Open Banking. The exact list varies by product, but being prepared with the items below will speed things up and reduce back-and-forth.

• Company details: legal name, trading name, company number, trading start date, registered/trading addresses, sector/SIC code.
• Ownership and directors: full names, dates of birth, home addresses, shareholdings (>25%), and contact details.
• Funding request: amount, purpose, preferred term, and any security/asset details if relevant.
• Financials: recent business bank statements (typically 3–12 months), latest filed accounts, management accounts, VAT and PAYE status, and forecasts if available.
• Compliance: consent for soft credit searches and optional Open Banking data-sharing to verify revenue and cash flow.

Updated: October 2025

What is an eligibility check or DIP, and why documents matter

An eligibility check is a quick review to see if your business broadly meets a funder’s criteria before a full application. A DIP (sometimes called an Agreement in Principle) goes a step further by confirming, in principle, that finance may be offered subject to final underwriting. Neither is a guarantee, and terms can change after deeper diligence.

Lenders and brokers use a small, consistent core of information to assess business stability, affordability, and risk. Providing accurate, up-to-date documents helps them match you to suitable funding types and speeds up next steps.

For most UK SMEs, the fastest route is to submit a concise Quick Quote with permission for a soft credit check and optional Open Banking. This combination verifies basics without impacting your personal credit score, and it usually allows a same-day view on eligibility.

Core information you’ll be asked for (applies to most products)

Business identity and structure: legal name, trading name, company number, registered and trading addresses, trading start date, SIC code, and VAT/PAYE registration. If you operate multiple sites, list locations and staff count by site if finance is site-specific.

Directors and shareholders: full names, dates of birth, home addresses, percentage shareholdings for Persons with Significant Control (usually >25%), and contact details. Some providers will also ask for brief experience summaries for key directors.

Funding outline: amount requested, how funds will be used, desired term, and product preference if known (e.g., cash flow loan, asset finance). Be specific about use of funds because it can influence product fit and pricing.

Business profile and performance: annual turnover, average monthly banked revenue, typical seasonality, main customers/suppliers, and any concentration risks. If your revenue is lumpy, highlight recurring contracts or framework agreements for context.

Credit and obligations: any existing loans, asset finance, CBILS/BBLS balances, merchant cash advances, or invoice finance arrangements. Provide monthly repayment totals, remaining terms, and any recent changes or arrears explanations.

Financial documents most lenders request (what to prepare in advance)

Business bank statements: the most common request is 3–6 months for working capital products, and up to 12 months for larger or more complex facilities. PDF downloads from your online banking or Open Banking connections are typically acceptable.

Filed accounts: latest full year’s accounts as filed at Companies House. If your year-end is older than 9–12 months, be ready with up-to-date management accounts to bridge the gap.

Management accounts: year-to-date profit and loss and balance sheet, ideally with comparatives and clear dating. A short commentary on any recent performance swings is helpful.

VAT and PAYE evidence: confirmation of your current status, and recent VAT returns if requested. Some lenders want HMRC screenshots or statements to confirm liabilities are managed.

Aged debtor and creditor reports: especially relevant for invoice finance and larger loans. These show who owes you money, how long it’s outstanding, and how you manage supplier payments.

Forecasts and cash flow: 12-month cash flow and P&L forecasts can strengthen your case, especially for growth projects, refurbishments, or if your latest accounts don’t reflect current trading.

Identity and address verification: directors may be asked for photo ID (passport or photocard driving licence) and recent proof of address (e.g., utility bill or bank statement dated within 3 months). Keep high-quality scans ready.

Extra documents by finance type (what changes for each product)

Unsecured term loans and cash flow facilities

Expect a focus on bank statements, accounts, and affordability. Lenders may also ask for a business plan or narrative to explain the project, hiring plans, or cost savings you expect from the funding.

Where personal guarantees are required, some providers will ask for a Statement of Assets, Liabilities, Income and Expenditure (SALIE) from guarantors. Keep this factual and consistent with your credit file.

Asset finance and equipment finance

Provide supplier quotes or pro forma invoices that include make, model, serial numbers (if known), and full cost including VAT. For refinancing existing assets, provide purchase invoices, current finance settlement figures, and photos if requested.

Asset schedules are helpful for multi-asset deals: list each item, price, supplier details, and delivery timelines. Proof of insurance or intention to insure may be needed before payout.

Invoice finance and selective invoice discounting

Be ready with aged debtor reports, sample invoices, and standard customer contracts or terms of business. Lenders will focus on debtor quality, concentration limits, and dispute history.

They may request ledger exports from your accounting system, proof of credit insurance (if in place), and details of any recourse/retention of title clauses affecting your supply chain.

Vehicle and fleet finance

Submit dealer quotes including registration details, mileage (for used vehicles), and specification. For sale-and-leaseback or refinance, provide V5C copies, existing finance settlements, and maintenance records if relevant.

Some providers will also request operator licence details and fleet insurance schedules for commercial fleets.

Fit-out, refurbishment and capex projects

Provide a clear scope of works, itemised quotes from contractors, and a timeline with milestones. Landlord consent letters or evidence of lease terms may be required for property-related works.

For staged drawdowns, set out the payment schedule and who will certify progress (e.g., project manager or QS).

Refinance and consolidation

Provide a full schedule of existing agreements including lender names, agreement numbers, outstanding balances, monthly repayments, and settlement figures. Explain the goal: lower monthly outgoings, simpler administration, or releasing working capital.

If you’re consolidating across multiple products, a short narrative on expected savings and cash-flow impact is useful.

Sector-specific extras

Some industries may be asked for sector-specific evidence. For example, healthcare business loans may involve CQC registration, occupancy rates, and Local Authority contract summaries for care settings.

Construction firms might be asked for CIS statements, copies of major contracts, and a pipeline schedule. Logistics businesses could be asked for major customer contracts and operator compliance history.

Speeding up your DIP and what happens next

Practical tips to move fast: gather bank statements for the last 6–12 months, export PDF management accounts, and prepare a one-page summary of the funding purpose and benefits. Ensure company details match Companies House and your bank statements.

Consent and checks: most eligibility checks use soft searches that don’t affect your personal credit score. Open Banking connections are optional but often accelerate the process by verifying revenues and affordability instantly.

Timeframes: straightforward DIPs can be issued the same day once core documents are in, while complex or multi-asset cases may take a few days. Final offers always remain subject to underwriting, verification, and any required security documentation.

FAQs (quick answers)

Is a DIP a binding offer? No. It is an in-principle view subject to final checks, documents, and underwriting. Terms may change if new information emerges.

Do I need all documents upfront? Not always. Start with bank statements, accounts, and basic details. Your broker or lender will request any extras specific to your case.

Will you run a hard credit check? Early-stage eligibility checks typically use soft searches, but a hard search may be required later before a final offer. You’ll be asked for consent first.

Can start-ups apply? Best Business Loans focuses on established UK businesses and does not currently support start-ups or sole traders.

How does Best Business Loans help? We do not offer loans. We use AI-driven matching and a network of providers to help you find relevant finance options and connect you with suitable lenders or brokers.

What about data security? Your information is handled securely and only shared with relevant finance professionals for your enquiry. Open Banking is permission-based and you remain in control.

Next steps

Complete a Quick Quote with your basic details and upload recent bank statements to get an initial view. If you’re ready, grant Open Banking access to speed verification and reduce further document requests.

Our platform will match your profile and introduce you to suitable providers, so you can compare options and move forward with confidence. There’s no obligation to proceed until you’re comfortable with the terms.

Start your Quick Quote now to check your eligibility and request a DIP.

Important information: Best Business Loans operates as an independent introducer and does not provide loans or credit decisions. Any eligibility checks, DIPs, and final offers are provided by third-party lenders or brokers and are subject to status, affordability, and underwriting. Rates, fees, and terms vary by provider and product type. Early-stage checks typically involve soft searches; some providers may require hard searches later with your consent. This page is for information only and is not financial advice.

Key takeaways

• Eligibility checks and DIPs need clear basics: company details, director info, bank statements, accounts, and consent for checks.
• Open Banking can speed up verification and reduce paperwork, especially for cash flow lending.
• Documents vary by product: asset quotes for asset finance, debtor ledgers for invoice finance, and project details for fit-outs.
• DIPs are indicative, not binding, and final offers depend on underwriting and verification.
• Best Business Loans is an introducer that helps you find suitable providers — you remain in control with no obligation to proceed.

Ready to check eligibility? Submit your Quick Quote in minutes to see potential options for your business and request a DIP. It’s fast, secure and without obligation.

Get your free Quick Quote now or email hello@bestbusinessloans.ai for guidance before you apply.