Best Business Loans

How long does it take from approval to receiving funds?

Short answer and typical timeframes for UK SMEs

Once a business finance application is approved, funds can arrive the same day or take several weeks depending on the type of facility, documentation, and any security requirements. Many unsecured business loans, merchant cash advances and revolving credit facilities pay out within 24–72 hours. Asset finance, invoice finance and secured lending can take 3–15 working days or longer if valuations, legal work, or external consents are required.

In practical terms, the time from approval to payout is shaped by two things: how quickly you complete final checks and documents, and how much legal or third‑party work the lender needs to complete before releasing funds. If everything is ready and signed, lenders often send money via Faster Payments the same day before banking cut‑off times.

Below are realistic ranges most established UK SMEs see after approval, assuming responsive communication and clean documentation. These are indicative, not guarantees, because each provider has its own processes and risk controls.

Typical post‑approval funding timelines by product

Unsecured business loan: 24 hours to 3 working days
Revolving credit facility/line of credit: 24–72 hours for initial setup, same‑day for later drawdowns
Merchant cash advance: 24–72 hours
Invoice finance (factoring/discounting): 3–10 working days for first draw; 24–48 hours for ongoing invoice prepayments
Asset finance (hire purchase/lease): 3–10 working days; longer if valuations or supplier checks are complex
Refinance of existing assets: 5–15 working days, subject to searches and release of any prior charges
Secured term loan with debenture/charge: 5–20 working days, depending on legal work and any landlord/bank waivers
Growth Guarantee Scheme loans: 5–15 working days after approval, varying by lender’s legal process

How the money actually lands

Lenders typically use Faster Payments for sub‑£1m transactions, which can arrive within hours on working days. CHAPS is used for larger sums or to guarantee same‑day arrival, often with a cut‑off around 2–5pm. BACS is uncommon for drawdowns because it takes three working days.

If your facility is approved late in the day or on a Friday, the transfer may complete the next working day. Public holidays and month‑end workloads can also extend timelines.

What happens between “approved” and “paid out”?

“Approval” usually means the lender is willing to fund subject to completing final checks and documents. This stage is sometimes called “conditional approval”, “credit‑backed approval”, or “formal offer”. You will be asked to sign a facility agreement and sometimes provide guarantees or evidence of insurance and compliance.

After you accept the offer, the lender executes final Know Your Customer (KYC) and Anti‑Money Laundering (AML) checks and may run fresh credit and fraud screens. If security is involved, their legal team or panel solicitor will prepare and register the relevant documents.

Lenders will then confirm drawdown conditions have been met (often listed in a “conditions precedent” schedule). Once satisfied, they authorise the payment and send funds to your nominated business account or, in asset finance, to your supplier.

Key steps that can add time post‑approval

Document execution: Signing the facility agreement, personal guarantees, debentures, or legal waivers
Companies House registrations: All‑assets debenture or fixed charges (registration must be within 21 days)
Valuations and inspections: For assets, vehicles, plant or specialist equipment
Landlord or superior landlord waivers: Common for fit‑out finance or any security over fixtures
Bank waiver or deed of priority: Needed if another lender already has a debenture
Insurance evidence: Noting the lender’s interest on relevant policies
Supplier due diligence: In asset finance, pro‑forma checks, match to invoices and serial numbers

Legal security and Companies House filings

Some lenders release funds once security is executed, while others wait for Companies House acknowledgement. Electronic filing can be confirmed within hours, but peak periods may add a day or two. If a priority deed is required with an existing lender, turnaround depends on that lender’s legal team.

For refinance, expect extra time for settlement figures and confirmation that old charges have been or will be satisfied. Being proactive with current lenders and suppliers usually speeds this up.

How to get funded faster after approval

The fastest payouts happen when businesses are prepared, responsive, and have a single decision maker ready to sign. A brief checklist of documents and decisions can shave days off your timeline. Aim to clear compliance queries within hours, not days.

If you are planning a time‑critical drawdown, tell the provider early and ask for a written list of “conditions precedent”. This sets clear expectations and helps both sides plan workload and cut‑off times.

When you use a broker or introducer, keep everyone copied on key emails to avoid duplication and delays. Providers generally prioritise applications that are ready to fund.

Documents to have to hand

Signed facility agreement and personal guarantees (where required)
Director/beneficial owner ID and proof of address (passport and utility bill are common)
Recent bank statements and management accounts if requested
Insurance schedule with lender interest noted for assets or premises
Supplier invoices, serial numbers and delivery notes for asset finance
Landlord contact details for consents or waivers
Details of existing charges and contact at your incumbent lender

Practical timing tips

Sign electronically the same day you receive documents and verify that all parties have executed correctly.
Ask for the expected payment method (Faster Payments or CHAPS) and the daily cut‑off time.
Avoid scheduling completion on Fridays or before bank holidays if timings are tight.
For invoice finance, upload a clean batch of invoices with proof of delivery and ensure debtors are verified.
For asset finance, pre‑agree delivery dates and ensure equipment is insurable and identifiable.

Sector nuances and third‑party consents

Professional and regulated sectors sometimes face additional checks around client money, trust accounts or regulatory restrictions. For example, practices handling client funds may need tailored structures or waivers from landlords and banks.

If you work in legal services, specialist providers understand SRA accounts, cash‑flow cycles and partner structures, which can shorten post‑approval steps. Learn more about sector‑specific guidance here: loans and finance for solicitors.

Where a bank holds an existing debenture, start the deed of priority conversation early. Third‑party turnaround is often the single biggest variable in funding timelines.

Ready to move quickly?

Best Business Loans helps you prepare for fast drawdown by matching your profile to providers whose processes fit your timing. Submit a short form and request a Decision in Principle or eligibility check without obligation.

Get Your Free Quick Quote to see indicative timelines and what documents to line up today. Clear expectations and the right provider often make the difference between same‑week and multi‑week funding.

Realistic timelines and scenarios

Every case is unique, but the following examples highlight typical steps between approval and funding. These are illustrative, not commitments, and assume an established UK business with clean records and responsive signatories.

Scenario 1: Unsecured cashflow loan (£150,000)

Day 0: Approved subject to e‑signed agreement, PG and KYC. Documents issued by 11:00. You e‑sign by 14:00 and upload ID and bank statements by 15:00.

Day 1: Lender completes AML, fraud checks and countersigns the agreement by noon. Funds are sent by Faster Payments at 15:30 and hit your account by 17:00. Total time: 24–36 hours.

Scenario 2: Asset finance for CNC machine (£280,000)

Day 0: Approved subject to valuation, insurance, and supplier verification. Valuation scheduled for Day 1; insurer issues a schedule naming the lender’s interest on Day 2.

Day 3–4: Legal security documents signed. Companies House filing submitted electronically the same day. Funds released to supplier on Day 5 via CHAPS. Total time: 5–7 working days.

Scenario 3: Invoice finance facility (initial draw £500,000)

Day 0: Approved subject to facility agreement, notice of assignment, and debtor verification. E‑signing completed same day.

Day 2–4: Debtors verified; online portal activated; first batch of invoices uploaded with PODs. Initial advance released Day 4–5, with ongoing draws arriving in 24–48 hours. Total time to first funding: 3–5 working days.

What can slow these down?

Delays in signing or incomplete documents (e.g., missing initials on guarantee schedules)
Inconsistent ID, address or shareholder details versus Companies House records
Awaiting third‑party consents: landlord waivers, bank priority deeds, supplier confirmations
Complex group structures, trusts, or cross‑border elements requiring enhanced due diligence
Public holidays, month‑end, and quarter‑end peaks in underwriting and legal teams

FAQs, compliance notes and next steps

Do lenders ever fund on the same day as approval?

Yes, for smaller unsecured loans and revolving facilities, same‑day payouts are possible if e‑signing and KYC complete by cut‑off. This is more likely with existing customers or simple ownership structures.

For larger tickets and secured lending, same‑day is uncommon because of legal and registration steps. Even then, clear pre‑work can reduce the timeline to a few days.

Will my bank delay the incoming funds?

Most UK business accounts receive Faster Payments within hours if sent before cut‑off. Sometimes banks hold first‑time large credits for security checks, which may add a short delay.

Ask the lender which payment rail they’ll use and request confirmation once sent. If time‑critical, CHAPS can provide predictable same‑day settlement.

What if my approval expires before I draw down?

Offers often have expiry dates or conditions that must be met by a deadline. If you need more time, contact the provider quickly to discuss an extension or re‑issue.

Some lenders can re‑underwrite swiftly, but material changes in your business performance may require updated information.

Can I speed up secured lending?

Yes, by lining up landlord and bank contacts early, preparing insurance schedules, and agreeing a draft deed of priority in principle. Ensure your Companies House records are current and match application data.

Using experienced sector lenders for specialist assets or regulated professions often shortens legal review. Clarity and early engagement save the most time.

Does Best Business Loans pay out the money?

No. Best Business Loans does not provide or arrange credit and does not pay out funds. We act as an independent introducer that helps you find and compare suitable finance providers and brokers.

Any finance agreement will be directly between your business and the chosen provider. Always review terms carefully and seek independent advice if needed.

Clear, fair and not misleading

Timeframes on this page are indicative and not guaranteed. Funding is subject to eligibility, underwriting, due diligence and the provider’s processes.

Costs, fees and interest vary by lender and your circumstances. Consider affordability and the risks of secured borrowing, including potential loss of assets if you default.

Key takeaways

Simple unsecured loans and lines of credit often pay out in 24–72 hours after approval.
Facilities involving security, valuations or third‑party waivers typically take 3–15 working days.
Fastest funding comes from prompt e‑signing, complete documents and early third‑party engagement.
Ask about payment rails and cut‑off times to avoid unnecessary delays.
Best Business Loans matches you with providers whose processes fit your timing and sector.

Next steps

If timing is critical, tell us your deadline and we’ll factor that into your provider match. You’ll get clarity on likely timelines, key conditions, and the documents to prepare.

Start your Quick Quote for a no‑obligation eligibility check and introductions to lenders and brokers who are actively funding businesses like yours.

Updated October 2025

About Best Business Loans

BestBusinessLoans.ai helps established UK companies explore business finance options using AI‑driven matching and a network of trusted lenders and brokers. We do not offer loans directly and we are not a lender.

Our goal is to make finance research faster, clearer and more confident by connecting you with relevant providers and explaining the steps from enquiry to funding. Your information is handled securely and only shared with appropriate partners for your enquiry.