What information do I need to provide to get a Decision in Principle?
Quick answer
To get a Decision in Principle (DIP) for business finance, you’ll usually need basic company and director details, recent financial information (such as accounts and bank statements), and a clear outline of how much you want to borrow and why. Most lenders also ask for consent to run credit and identity checks and may request sector-specific documents depending on the funding type. A DIP is indicative, not a binding offer, and is subject to full underwriting, verification and, where relevant, valuation.
The essentials lenders use to pre-assess your case
Core business information
Lenders start with the fundamentals to verify who you are and how you trade. Expect to provide your legal business name, trading name, registered address, and trading address if different. Include your Companies House number, incorporation date, and legal form (Ltd or LLP).
Outline your sector, a brief description of what you do, and who your customers are. Add your website and key contact details for quick follow-up. State the number of employees and any relevant accreditations or licences if applicable.
Directors, shareholders and ownership
List full names, roles, and shareholdings for all persons of significant control (typically 25%+). Provide dates of birth, home addresses and address history (usually 3 years), and contact details. Lenders use this to satisfy KYC/AML checks and to understand control and accountability.
If there is a parent company or group, outline the structure simply. Where multiple directors are involved, note who is authorised to discuss finance and sign documents.
Credit, KYC and AML consent
Most DIP processes include soft credit checks on the company and key individuals. Provide explicit consent for these checks and for ID verification. Some lenders may require a hard search at a later stage, but initial DIPs are often soft-search only.
Data security and privacy
Best Business Loans handles your details securely and shares them only with relevant, suitable providers. We are an independent introducer and do not supply loans directly or sell your data.
Quick Quote checklist (typical)
- Company name, number and trading address
- Sector and brief business overview
- Director and shareholder details
- Funding amount, purpose and desired term
- Consent for credit and identity checks
Financial evidence that supports an informed DIP
Accounts and management information
Provide your most recent filed annual accounts and, if they’re more than 6–9 months old, year-to-date management accounts. Lenders use these to assess turnover trends, profitability, margins and resilience.
Include a snapshot of debtors, creditors and stock levels where possible. For growing firms, brief commentary on major changes since the last year-end helps context.
Business bank statements
Upload 3–6 months of primary business bank statements in PDF or via secure open banking. Lenders use these to see cash inflows, seasonality, returned items and current commitments.
Highlight any unusual payments, windfalls or one-off costs to avoid misinterpretation. Consistent revenues and orderly outflows generally support a stronger DIP.
Existing finance and commitments
List current facilities such as loans, HP/asset finance, invoice finance, card merchant cash advances and overdrafts. Include lender names, monthly repayments, outstanding balances and end dates.
Disclose any debentures, personal guarantees or charges on assets. Transparency at DIP stage prevents delays later and builds trust.
HMRC status and key obligations
Note your VAT and PAYE status and whether any arrears exist. If HMRC liabilities are present and under a Time To Pay arrangement, provide details. This is common and not necessarily a blocker if well managed.
Where relevant, share any insurance relevant to the business’s trading continuity. In certain sectors, proof of cover gives added comfort.
The funding request: clarity, purpose and security
Amount, term and repayment preferences
State how much funding you need, the preferred term (e.g., 6–60 months) and repayment profile (monthly, seasonal or flexible if available). Be realistic: align requested term to the asset life or working capital cycle.
If looking to refinance existing borrowing, explain the benefits (reduced cost, longer term, consolidation or improved cash flow). Clear objectives help lenders tailor options.
Use of funds and outcomes
Explain precisely how you will use the finance, such as buying equipment, refurbishing premises, hiring staff or bridging cash flow. Quantify expected outcomes where you can: productivity gains, cost savings or revenue uplift.
For sustainability projects, outline energy savings or carbon reductions. This can unlock specialist green funding lines.
Security, guarantees and collateral
Some facilities are unsecured; others require security. Indicate if you can offer a debenture, fixed charge, specific asset security or if a personal guarantee is feasible. The right security can widen your options and improve pricing.
If you prefer unsecured options only, say so. Lenders will still assess affordability and risk appetite accordingly.
Timing and contingency
Share your timeline and any critical dates, such as supplier deadlines or seasonal peaks. If a purchase depends on funding, upload the supplier quote or pro forma.
Mention any contingency plan, even briefly. It shows prudent planning and can strengthen confidence at DIP stage.
Sector-specific extras that can accelerate your DIP
Invoice finance and receivables-based funding
Provide a recent aged debtor report, top customer concentrations and typical payment terms. Include average DSO (days sales outstanding) and any credit insurance.
If selective or spot invoice finance is desired, specify typical invoice values and volumes. Robust debtor quality improves DIP outcomes.
Asset and equipment finance
Include supplier quotes, asset specifications and serial or registration details if available. Note whether the asset is new or used and its expected working life.
For refinance, provide existing agreement details and the asset’s condition. Photos and maintenance records can help.
Vehicle and fleet finance
Share the vehicle type, age, mileage and registration (VRN) if known. State whether you prefer HP, lease or contract hire structures.
If the vehicles are specialist (e.g., refrigerated vans or HGVs), provide body specification and lead times. Residual values are a common consideration.
Card takings and merchant cash flow
If you’re exploring facilities linked to card revenues, include monthly card takings statements for 3–6 months. Lenders look for stable volumes and seasonality patterns.
Hospitality, retail and leisure businesses can often leverage predictable card turnover to support working capital lines. For example, venues considering upgrades can explore flexible options; see our guide to pubs business loans and hospitality funding for sector context.
Project, fit-out and refurbishment finance
Provide contractor quotes, timelines and planning or landlord consents if required. A simple project breakdown can streamline the DIP.
Where multiple suppliers are involved, a summary cost schedule is useful. Include contingencies and staged payment plans.
After the DIP: what to expect, timelines, and approval tips
What a DIP is — and isn’t
A Decision in Principle indicates that, based on the information provided, a lender or broker believes funding could be available subject to full checks. It is not an offer or guarantee, and pricing may change after underwriting. Final approval may require valuations, site visits, or additional documents.
In many cases, a DIP can be issued the same day once core information is received. Speed depends on the complexity of the request and document quality.
Typical next steps to move from DIP to offer
- Formal application and verification of documents
- Credit, AML and fraud checks on company and individuals
- Assessment of affordability, serviceability and covenants
- Security confirmations and, if relevant, valuations or inspections
- Issuance of an offer letter with terms, fees and conditions
How to strengthen your DIP quality
Be accurate and consistent: figures in accounts, bank statements and your application should align. Explain any anomalies or one-offs. Provide complete documents, legible PDFs and, where possible, management commentary.
Be realistic on amount and term; right-sizing the facility improves outcomes. Show how the finance supports growth, efficiency or resilience with clear metrics.
Soft checks, credit impact and transparency
Many DIPs use soft searches which don’t impact your credit score, but some providers may run hard checks later. Always ask what type of search will be performed and when. If in doubt, we’ll clarify this with potential providers before proceeding.
Where a personal guarantee is requested, understand the obligations and consider independent advice. Being fully informed is part of responsible borrowing.
Common reasons DIPs stall — and how to avoid them
- Incomplete bank statements or missing pages
- Out-of-date management accounts without commentary
- Undisclosed existing borrowing or HMRC arrears
- Mismatched director details or address history gaps
- Unclear project scope or missing supplier quotes
FAQs
Does a DIP commit me to a lender? No — a DIP is non-binding and helps you gauge eligibility before a full application.
How long does a DIP take? Often within 24 hours once the basics are supplied; complex or asset-backed cases may take longer.
Will I need a personal guarantee? It depends on the product, risk profile and security available; not all facilities require one.
What if my figures have changed since year-end? Provide up-to-date management accounts and a short explanation of changes to support a fair assessment.
Start your DIP the smart way
Best Business Loans is an independent introducer using AI-driven matching to connect established UK companies with suitable lenders and brokers. We don’t offer loans directly, and there’s no obligation to proceed. Submit a Quick Quote to check indicative eligibility and get connected to relevant providers faster.
Ready to begin? Complete your Quick Quote now for a no-obligation eligibility check. It only takes a couple of minutes to share the essentials and get your DIP moving.
Important information and fair, clear and not misleading notice
Eligibility and funding are subject to status, affordability and provider criteria. A Decision in Principle is not an offer and may change after underwriting, valuation and legal due diligence. Fees, rates and terms vary by provider; you’ll receive full details before you decide.
Best Business Loans operates as an independent introducer for UK businesses; we do not currently support start-ups, sole traders, franchises, property finance or commercial mortgages. We may receive a commission from providers if you proceed with a product they offer.
Author and update
Author: Business Finance Editorial Team, BestBusinessLoans.ai
Updated: October 2025
Contact: hello@bestbusinessloans.ai • www.bestbusinessloans.ai
Key takeaways
- Have company, director and ownership details ready, plus 3–6 months’ bank statements and recent accounts.
- State the funding amount, term and purpose clearly, and provide any sector-specific documents (e.g., debtor reports or supplier quotes).
- A DIP is indicative, generally based on soft checks, and subject to full underwriting and verification.
- Complete, consistent information leads to faster, better-quality DIPs.
- Use Best Business Loans to match quickly with relevant providers without obligation.