Best Business Loans

What documents will lenders usually ask for (accounts, bank statements, PII schedule, aged debtors, etc)?

The short answer — the core documents lenders typically request

Most UK business lenders ask for a consistent set of documents to confirm identity, understand trading performance, and assess affordability. Expect to provide statutory accounts, recent management accounts, business bank statements, and key ledgers such as aged debtors and aged creditors. Sector-specific items like a Professional Indemnity Insurance (PII) schedule for law firms may also be required.

At a minimum, lenders usually want the last two years of accounts, year-to-date management figures, and 3–12 months of bank statements. They will often request a cash flow forecast for larger facilities, plus HMRC evidence to verify VAT, PAYE, and Corporation Tax status. If you have existing borrowing, a debt schedule helps them assess commitments.

Documents must be recent, accurate, and consistent across your pack. Keep naming clear, dates visible, and files in recognised formats (PDF for final copies, CSV for bank data if requested). Using Open Banking can speed up verification and reduce manual uploads.

Core financials

Statutory accounts for the last 2 years (audited if required, otherwise signed unaudited).
Year-to-date management accounts (Profit & Loss, Balance Sheet), ideally no older than 90 days.
Cash flow forecast (typically 12 months) for growth loans or larger facilities.

Banking and cash flow

Business bank statements for the last 6 months, sometimes 12 months for larger or seasonal businesses.
Open Banking consent in lieu of statements where supported by the lender.

ID, corporate and tax

Photo ID and proof of address for directors/PSC shareholders.
Certificate of Incorporation, shareholders list/cap table, and Articles if requested.
HMRC documentation: VAT returns (last 4 quarters), PAYE summaries, CT600 or tax computations.

Ledgers, policies and schedules

Aged debtors and aged creditors (usually within the last 30 days).
Insurance schedule(s) including PII for regulated professions, with coverage limits and retroactive date.
Existing borrowing schedule with lender names, balances, terms, and security.

Product-specific requirements and why they differ

Different finance products assess risk in different ways, so the document pack changes with the facility type. Unsecured term loans focus on cash flow sustainability, while asset finance focuses on the asset and VAT status. Invoice finance relies on ledger quality and debtor concentration risk.

Prepare documents aligned to the product you are seeking to avoid delays. The more tailored your pack, the faster a credit team can build confidence and move to an offer. Below is a practical guide by product type.

Unsecured term loans and revolving credit facilities

These facilities rely on affordability, stability, and serviceability. Lenders will examine trading trends, gross margins, overheads, and debt service coverage ratios. They may also request director guarantees for smaller businesses.

Typical pack

Statutory accounts (2 years) and YTD management accounts.
6–12 months business bank statements (PDF or via Open Banking).
Cash flow forecast (12 months) for larger requests or where performance has changed.
Aged debtors/creditors, plus an existing borrowing schedule.
HMRC status evidence (VAT/PAYE up to date) and any Time To Pay arrangements.

Asset finance and vehicles/fleet

Credit focuses on the asset’s value, depreciation, and secondary market. Lenders also check the business’s ability to service payments and VAT recovery status for lease vs hire purchase.

Supplier quotation, asset specification, and serial numbers if available.
Accounts, YTD managements, and 3–6 months bank statements.
Insurance details covering the asset and any sector-required policies.
Proof of deposit if applicable and delivery/installation timeline.

Invoice finance and factoring

Risk sits in your receivables performance and your customers’ creditworthiness. The lender scrutinises debtor quality, concentration, disputes, and dilution. Robust ledger housekeeping can materially improve outcomes.

Aged debtor ledger and aged creditor ledger (current, ideally < 30 days old).
Top customer analysis, credit limits, and concentration percentages.
Sample invoices, proof of delivery/acceptance, and contracts/TS&Cs.
Ledger reconciliation process and write-off policy.
Accounts, management accounts, and bank statements as standard.

Merchant cash advance (card turnover lending)

Assessment focuses on card sales trends and seasonality. Lenders will want to verify daily/monthly card settlements and refund levels.

6–12 months merchant statements or card processor reports.
Business bank statements showing settlement credits.
Accounts and YTD figures to validate overall trading.

Growth Guarantee Scheme (government-backed)

This is aimed at viable UK businesses meeting scheme criteria. Documentation is more formal and often includes forecasts and detailed use-of-funds.

Full financial pack: accounts, YTD managements, forecasts, bank statements.
Business plan or narrative on purpose, benefits, and repayment source.
Evidence of any security or guarantees requested under scheme rules.

How to present your documents for a faster credit decision

Great documentation reduces queries and increases confidence. Present clean, consistent, and recent files with clear filenames and matching figures across statements and accounts. Avoid screenshots or photograph images where possible.

Save documents as searchable PDFs, and use CSV for bank data if the lender requests it. Ensure all dates, company names, and totals align across files to prevent red flags.

Practical formatting standards

Recency: management accounts ≤ 90 days old; ledgers ≤ 30 days old; bank statements ≤ 6–12 months.
File naming: “CompanyName_DocType_Period_EndDate.pdf” keeps packs orderly.
Completeness: include all pages, signed statements, and director certificates if relevant.

Useful schedules that strengthen applications

Existing borrowing schedule with rates, maturities, monthly payments, and security.
Debtor concentration report: top 10 customers and % exposure by sector/geography.
Stock list and aged WIP where relevant, with valuation policy notes.
Contract pipeline with start/end dates, values, and counterparties for project-led firms.

Common pitfalls to avoid

Mismatched revenue between bank statements and management accounts.
Old or unreconciled ledgers, heavy unallocated cash, or aged disputes.
Missing VAT returns or HMRC arrears not explained with a Time To Pay letter.
Director ID not matching Companies House or bank KYC records.

Checklist for first submission

Accounts (2 years), YTD P&L/Balance Sheet, and cash flow forecast if requested.
Bank statements (6–12 months) or Open Banking connection completed.
Aged debtors/creditors, VAT returns (4 quarters), PAYE summary.
PII or key insurance schedules, borrowing schedule, and any key contracts.

Sector nuances — what extra documents some industries must supply

Some industries carry specific operational or regulatory risks. Lenders request sector-specific documents to validate cover, client quality, or contractual terms. Being proactive with these reduces back-and-forth.

Law firms, construction, and multi-site retail are the most common sectors where extra documentation helps. Healthcare and care homes also need comprehensive insurance and compliance evidence.

Law firms and professional services

Most lenders ask for your Professional Indemnity Insurance (PII) schedule, including insurer, limit of indemnity, excess, retroactive date, and run-off details. An aged WIP report and lock-up analysis (WIP + debtors days) can be decisive. Engagement letters and AML procedures may be requested for invoice finance.

For deeper sector guidance and funding options, see our page on solicitors loans. Present SRA compliance confirmations and any Lexcel or quality accreditations if relevant. Explain any prior PII claims and corrective actions taken.

Construction and contracting

Expect to provide contracts, schedules of works, stage certifications, and CIS statements. Aged WIP and retentions schedules help lenders understand cash conversion. Employer Liability and Contractors All Risks insurance evidence is important.

For invoice finance, include proof of valuation sign-off and pay-when-paid clauses if present. Debtor concentration in main contractors should be disclosed. Clarify project durations and any performance bonds.

Retail, hospitality, and eCommerce

Card turnover reports, refund rates, and seasonality narratives help for merchant-based funding. Stock valuation policies and supplier terms are relevant for term loans. Lease agreements and business rates letters can support location stability.

eCommerce businesses should include marketplace statements (e.g., Amazon, Shopify), returns data, and chargeback histories. Multi-site operators should provide site-level P&L where possible.

Healthcare and care homes

Provide CQC registration status, inspection outcomes, and insurance schedules with adequate liability cover. A staff rota profile and agency usage summary support cost trend analysis. Local authority contracts and fee rates evidence revenue stability.

Compliance, privacy, and getting started

Financial promotions should be fair, clear, and not misleading. Your document pack should be accurate, up to date, and reflect your true position. Avoid exaggerated claims, and disclose material risks or unusual items.

Best Business Loans operates as an independent introducer. We do not provide loans or financial advice; we help you explore suitable providers through our AI-driven matching and network.

Data security and Open Banking

Many UK lenders now use Open Banking to securely verify bank data. You control consent, and access can be revoked at any time. Only share data with trusted, relevant parties involved in assessing your enquiry.

We handle your details confidentially and share them only with matched providers relevant to your case. You may be asked to upload documents via secure portals to speed up underwriting.

How our Quick Quote helps you prepare

Complete a short Quick Quote with your funding purpose, amount, and business details. Our system highlights likely documentation needs by product type and sector. You’ll be introduced to providers who may be able to help, saving time chasing multiple firms.

Submitting an enquiry is free and without obligation. Eligibility, terms, and approval are always subject to each provider’s criteria and checks.

Key takeaways

Expect accounts (2 years), YTD managements, bank statements, HMRC evidence, and aged ledgers.
Sector extras like PII schedules and WIP/retentions are common in regulated or project-led fields.
Use clear, recent, consistent documents to speed decisions and reduce queries.
Open Banking can simplify verification and cut paperwork.
We introduce you to suitable lenders and brokers; we do not lend or provide advice.

FAQs

Do I always need audited accounts?

Not always, as many SMEs file unaudited accounts and that is acceptable to most lenders. However, larger facilities or regulated sectors may require audited statements. Lenders will confirm if audit is mandatory for your case.

How many months of bank statements are typical?

Six months is standard, but some lenders ask for twelve months to understand seasonality. Merchant cash advance providers often request 6–12 months of card statements as well. Open Banking can replace PDFs where supported.

What is an aged debtors report and why is it needed?

It lists outstanding customer invoices grouped by how long they’ve been due (e.g., 0–30, 31–60, 61–90+ days). Lenders use it to gauge cash conversion and credit control. Heavy overdues can affect affordability or invoice finance limits.

Why do lenders ask for a PII schedule?

Professional Indemnity Insurance protects against claims for professional negligence. For solicitors, accountants, and similar professions, it signals risk management and regulatory compliance. Lenders review limits, exclusions, and any claims history.

Will a Quick Quote affect my credit score?

Our initial matching does not involve a hard credit search. A lender may request consent for a credit check later, and they will tell you if it is a soft or hard search. Always read the provider’s terms before proceeding.

What if I have HMRC arrears?

Disclose them with context and any Time To Pay arrangement. Transparent explanations help credit teams assess viability. Undisclosed arrears discovered later can slow or stop an application.

I’m a newer business with limited accounts — what can I provide?

Strong management accounts, bank statements, director SA302s/tax overviews, and a clear business plan can help. Asset-backed or invoice-backed products may be more suitable early on. Lenders favour clear evidence of demand and cash inflow.

Start your funding journey

If you have these documents ready, you’re already ahead. Share a Quick Quote and we’ll help you connect with providers likely to support your sector and goals. It’s fast, confidential, and there’s no obligation to proceed.

Important information: Best Business Loans is an independent introducer. We do not provide loans or financial advice. Any funding is subject to eligibility, affordability checks, provider criteria, and agreement of terms. Ensure any financial decision is right for your circumstances and seek professional advice if needed.