How long does a Decision in Principle usually take?
Short answer: Typical Decision in Principle times and what they mean
A Decision in Principle (DIP) can be returned almost instantly in simple cases, or take several days for more complex enquiries. Most online or alternative lenders give a DIP within minutes to 48 hours, while larger high-street banks and specialist facilities can take from 48 hours up to two weeks. A DIP is an early eligibility check, not a final loan offer, and times vary depending on lender type, required checks and the information you supply.
Typical timeframes and why they differ
Instant DIPs: many fintech and alternative lenders use automated underwriting and give an immediate or near-instant DIP after you submit basic business data. These systems match your profile to lending rules and return a result within seconds or minutes. Instant DIPs are common for unsecured small business loans, invoice finance and many merchant cash advance-style products.
Short turnaround (same day to 48 hours): some brokers and medium-sized lenders combine automated checks with a short manual review. They may need to validate documents or run identity checks before confirming eligibility. This timeline is typical for asset finance, cashflow loans and medium-ticket equipment finance enquiries.
Longer decisions (3–14 days): high-street banks, specialist funds or complex facilities often require deeper due diligence, financial analysis and internal approvals. Where credit committees review applications, a DIP can take several days to two weeks. Property-secured or bespoke structures often sit at this slower end of the spectrum.
How lender type and product affect DIP timing
High-street banks: these lenders usually apply stricter credit policies and manual underwriting, so DIPs take longer than automated providers. Expect 3–14 working days where additional management accounts, forecasts or board approvals are needed. Banks may also carry out pre-credit calls or request more detailed trading history.
Specialist lenders and brokers: specialist lenders that focus on sectors such as construction, manufacturing or haulage may respond faster if your industry matches their appetite. Brokers running a quick quote or eligibility check can often obtain multiple DIPs in parallel, speeding up the process. Best Business Loans uses AI matching to find suitable lenders and brokers quickly, which helps reduce waiting times.
Asset and equipment finance: DIPs for asset-backed finance can be fast when the asset value, supplier invoice and customer credit are clear. If the asset is specialised, the funder may need valuation checks and further detail, which can extend the timeline. If you are seeking equipment funding, see our equipment finance guide for more on provider expectations: equipment finance.
What information speeds up a Decision in Principle?
Providing accurate, complete information is the single biggest factor that speeds up a DIP. Typical fields include company name, registration number, turnover, trading history, director details and purpose of funding. If you attach recent management accounts, supplier invoices or a clear equipment quote, decision times fall significantly.
Credit checks: many DIPs use a soft search on business and director credit files which does not affect scores. If a lender requires a hard search, they will usually confirm this before proceeding. Knowing whether a lender uses soft or hard checks helps avoid surprises and allows you to choose faster pre-check routes where available.
Identity and compliance: anti-money laundering (AML) and know-your-customer (KYC) checks can add time if documentation is missing or unclear. Common causes of delay include mismatched addresses, incomplete proof of trading or outstanding tax queries. Preparing certified IDs and up-to-date financials before applying helps keep the DIP process swift.
What a Decision in Principle does and doesn’t mean
A DIP confirms preliminary eligibility based on the information supplied and the lender’s lending rules. It indicates whether you are likely to pass main underwriting and can support a formal offer application. A DIP is not legally binding for the lender or borrower and does not lock in interest rates, fees or final terms.
Conditional outcomes: many DIPs are conditional on further checks such as full accounts, supplier invoices, asset valuations or outstanding VAT returns. If conditions are met quickly, conversion from DIP to full offer can be fast. If conditions are complex or documents are late, the process moves more slowly and may require negotiation of terms.
Soft vs hard DIP checks: always confirm with the lender or broker which type of credit check they will run during the DIP stage. Soft checks preserve credit scores and are more common in the initial matching phase. If a hard credit check is planned, you should be alerted so you can consent and prepare for the potential impact on director credit records.
Practical timelines, examples and next steps
Example timelines: an online invoice finance DIP can be instant, an equipment finance DIP with clear supplier paperwork often completes within 24–48 hours, and a customised refinancing or bank facility may take 1–2 weeks. Your sector, the complexity of the deal and the completeness of your submission are the main variables. Use these examples to set realistic expectations when you enquire.
How to speed up a DIP: 1) Prepare a concise one-page business summary and attach recent management accounts, 2) include any supplier quotes or invoices for asset purchases, 3) confirm director credit consent and provide proof of ID and address. Using a platform like Best Business Loans to match you with lenders who are actively lending in your sector shortens the search time and reduces repeat paperwork.
Next steps after a positive DIP: a favourable DIP usually leads to a full application, formal underwriting and then an offer subject to conditions. If a DIP is declined, ask for the reason and explore alternative lender types or specialist brokers who may have different appetite. Best Business Loans can connect you to relevant lenders and brokers to keep momentum when a result is slower or negative.
Key takeaways
- Decision in Principle times range from instant to two weeks depending on lender, product and documentation.
- Completing an accurate Quick Quote and supplying supporting documents speeds up DIPs.
- DIPs indicate likely eligibility but are not final offers and may be conditional on further checks.
- Ask whether a soft or hard credit search will be used before you proceed.
- Use a matching service to reduce time spent approaching multiple lenders and brokers.
Frequently asked questions
How long until I hear back after submitting a Quick Quote?
Many enquiries routed through automated matching receive a DIP within minutes, while some match-and-review processes take 24–72 hours. Complex or bank-level applications can take several days to two weeks depending on required checks.
Will a DIP affect my credit score?
Not usually. Most initial DIPs use soft credit searches which do not affect your score, but always confirm with the lender or broker before they proceed. If a hard search is needed, you should be told and asked to consent.
Can one DIP get me multiple offers?
A DIP is lender-specific, but a broker can run multiple DIPs in parallel to identify potential funders. Our platform helps match you to lenders who are likely to proceed, reducing duplicate checks and unnecessary delays.
Why use Best Business Loans for your Decision in Principle
Best Business Loans does not provide loans or give regulated advice, but we specialise in matching established UK businesses with lenders and brokers. Our AI-driven Quick Quote process helps identify which providers are likely to give a fast DIP for your needs. We only share enquiries with carefully selected partners and we operate transparently and confidentially.
If you want a faster DIP, complete our Quick Quote to start an eligibility check and Decision in Principle route matched to your business. There is no obligation and no fee to submit your details. We will tell you what to expect, which checks are likely and whether a soft or hard search will be used.
Ready to check eligibility? Submit a Quick Quote now and let our AI connect you with lenders and brokers who may return a Decision in Principle quickly.
Note: Best Business Loans is an introducer and matching platform only. We do not offer credit or provide regulated financial advice. All financial promotions on this site are intended to be clear, fair and not misleading. Always check terms and conduct your own due diligence before accepting any finance offer.