Is there any obligation to proceed after receiving matches or a Decision in Principle?
Short answer
No — there’s no obligation to proceed after you receive matches from Best Business Loans or a Decision in Principle (DIP) from a finance provider. A DIP indicates indicative eligibility, not a binding agreement. You only become committed if you formally accept an offer and sign the lender’s documentation.
1) What “matches” and a Decision in Principle really mean
What a “match” from Best Business Loans means
A “match” means our AI has identified lenders or brokers whose criteria may align with your business profile and funding needs. It’s a starting point to explore relevant options, not a guarantee of approval. You’re free to compare, ask questions, and walk away at any time.
What a Decision in Principle (DIP) means
A DIP (sometimes called a “heads-up approval”, “indicative offer” or “approval in principle”) is an initial, conditional indication that a funder could support you subject to further checks. It is not a binding offer, and it can change after underwriting, due diligence, and document review. There is no obligation for you to proceed after a DIP.
Soft checks vs hard checks
Some providers use a soft credit check to issue a DIP, which does not impact your credit score. Others may use a hard check later in the process, once you consent to proceed. Always ask the provider whether any credit search is soft or hard before you authorise it, and keep a record of your consent.
How Best Business Loans fits in
Best Business Loans is an independent introducer that connects established UK businesses to suitable lenders and brokers. We do not lend or make credit decisions. It is free to submit an enquiry, and there’s no obligation to proceed with any provider we introduce.
Eligibility is not guaranteed
Your final eligibility, terms and pricing depend on underwriting, financials, and the lender’s risk assessment at the time of application. Matches and DIPs are conditional and subject to change. You control whether to move forward, seek alternatives, or pause the process entirely.
2) When does any obligation to proceed arise?
No obligation until you sign contractual documents
You are not committed to a finance agreement until you accept the offer and sign the relevant documentation. Prior to that point, you can withdraw from discussions at any time. Providers usually confirm obligations and any fees clearly in writing before signature.
Typical triggers of legal commitment
Legal commitment usually arises when you sign a formal loan agreement, asset finance agreement, or invoice finance deed, and any conditions precedent are satisfied. If security is required, obligations may crystallise when you execute personal or director guarantees or grant charges. Always review the complete set of documents before signing.
Cooling-off and regulation
Some consumer or small business credit agreements may have statutory cooling-off rights, but many business finance agreements do not. If you’re a limited company or borrowing for business purposes over certain thresholds, your agreement may be unregulated. Ask the provider whether your agreement is regulated and whether any cooling-off period applies before you commit.
Transparency on fees and charges
Reputable lenders and brokers will explain fees upfront, including arrangement fees, documentation fees, valuation costs, or early settlement charges where applicable. Best Business Loans does not charge you to submit an enquiry. We may receive a commission from the provider if you proceed, which does not affect your obligation to proceed.
Read the small print
Before making a final decision, review key terms such as total cost of finance, fees, duration, early repayment provisions, security, and covenants. If anything is unclear, ask the provider to explain or seek independent advice. A clear understanding prevents surprises after signing.
3) What if you choose not to proceed?
Credit file considerations
A soft search typically leaves no footprint visible to other lenders and won’t affect your score. Hard searches are visible and can have a minor impact if several appear in a short time. If you decide not to proceed after a DIP, inform the provider promptly and confirm whether any searches were soft or hard.
Offer expiry and re-checks
Most DIPs and indicative offers expire after a set period, often 14–90 days. If you pause and return later, the provider may need updated financials and may re-run checks. This is normal and helps ensure the offer remains accurate and appropriate for your circumstances.
Costs, documents, and due diligence
Some deals involve third-party costs such as valuations or legal fees. You should be told in advance if any such costs could be payable even if you don’t complete. If you’ve not signed any agreement or agreed to pay such fees, you usually incur no costs by walking away at the DIP stage.
Keeping your options open
Declining one option doesn’t affect your ability to consider others. You can compare alternative providers, funding types, and structures that better suit your cash flow. Best Business Loans can introduce you to multiple suitable providers so you can make an informed choice without pressure.
Sector-specific journeys
Some sectors prefer tailored solutions, like asset finance or invoice finance for contract-heavy trades. For example, firms in building maintenance, M&E or HVAC might explore building services loans to smooth cash flow across staged projects. You can assess these options with no obligation to proceed.
4) How to use matches and a DIP to your advantage
Practical steps before deciding
Ask for a full fee breakdown, including any broker or lender fees, third-party costs, and early settlement terms. Confirm whether the quoted decision involved a soft or hard search and whether further searches will be needed. Request a summary of conditions precedent, security, and any covenants or performance requirements.
Compare options like a pro
When you receive multiple options, compare total cost, not just the headline rate. Consider repayment schedule, fees, flexibility for early repayment, and the impact on cash flow in best and worst-case scenarios. Assess covenants, personal guarantees, and charges over assets carefully.
Information you can request
- Indicative term sheet with all fees, charges, security, and conditions.
- Explanation of any variable rates, review points, or renewal fees.
- Clear statement on whether the agreement is regulated and any cooling-off rights.
- Confirmation of timing from approval to drawdown and key milestones.
Use a DIP to negotiate
A DIP can help you benchmark the market and negotiate more favourable terms. You may secure better pricing, lower fees, or a structure that aligns with your revenue cycles. There is still no obligation to proceed — use the information to decide with confidence.
Risk and suitability checks
Consider affordability under realistic trading conditions, not just the base forecast. Stress-test your cash flow to ensure repayments remain manageable if revenues dip. If uncertain, consult your accountant or an independent adviser before you sign anything.
5) Next steps with Best Business Loans
Free, no-obligation enquiry
It’s fast, secure and free to submit a Quick Quote with Best Business Loans. Tell us about your business and funding goals, and our AI will match you with relevant lenders or brokers. You remain in complete control — there’s no obligation to accept any introduction or DIP.
Security and confidentiality
Your information is handled confidentially and only shared with finance professionals relevant to your enquiry. We operate as an independent introducer and do not provide lending, credit broking or financial advice. You choose which providers to engage and whether to proceed.
Important notices and fair, clear, not misleading messaging
- We do not offer loans directly; we introduce you to third-party providers.
- Eligibility, terms and pricing depend on individual circumstances and provider criteria.
- Missing repayments can negatively affect your business and personal credit profiles and may result in asset repossession if secured.
- Where applicable, ask providers if agreements are regulated and whether cooling-off rights apply.
- No content here constitutes financial advice — consider independent advice before committing.
FAQs
Is there any obligation to proceed after receiving matches?
No. Matches are introductions only. You decide whether to engage with any provider or decline the options.
Is a Decision in Principle binding?
No. A DIP is conditional and subject to underwriting, verification, and documentation. You only become committed when you sign the final agreement.
Will a DIP harm my credit score?
Not usually if it’s based on a soft search, but confirm with the provider. Hard searches can have a minor impact, especially if multiple are run in a short period.
Can I still negotiate after a DIP?
Yes. Use the DIP as a baseline to compare and negotiate terms, fees, and structure before deciding.
Are there any fees if I don’t proceed?
Best Business Loans does not charge you to submit an enquiry. Some third-party costs may apply with certain providers if you authorise them; always check before agreeing.
Key takeaways
- No obligation to proceed after matches or a DIP.
- A DIP is conditional and not a binding offer.
- Commitment only arises when you sign the final documents.
- Confirm soft vs hard credit checks and any potential fees up front.
- Use matches and DIPs to compare options and negotiate better outcomes.
Ready to explore tailored options with zero obligation? Submit your Quick Quote today and let our AI introduce you to suitable providers across cash flow loans, asset finance, invoice finance, equipment finance, vehicle funding and more. You stay in control at every step.
About Best Business Loans
Best Business Loans (BestBusinessLoans.ai) is an independent UK introducer using AI to connect established businesses with relevant lenders and brokers. We do not offer loans directly, and we do not provide financial advice. It’s free to submit an enquiry, and there is no obligation to proceed with any match or Decision in Principle. Updated October 2025.