What’s the difference between a Quick Quote, an Eligibility Check and a Decision in Principle?

Updated October 2025

Short answer: the three steps at a glance

Quick Quote is an instant, indicative estimate based on the details you provide and typical market criteria. Eligibility Check tests your business against live lender rules to gauge whether you’re likely to be accepted, often using a soft search. Decision in Principle (DIP) is a conditional statement from a lender that they’re prepared to lend, subject to verification and underwriting.

Clear definitions and why they matter

A Quick Quote gives you a fast, ballpark view of potential amounts, rates, and terms. It is not an offer, and figures can change once documentation is reviewed. Think of it as a compass, not a contract.

An Eligibility Check goes deeper to assess whether your business is likely to pass a lender’s rules. It uses specific criteria like time trading, turnover, sector appetite, and affordability. The outcome is a probability, not a promise.

A Decision in Principle (also called an Agreement in Principle or Indicative Offer) is a lender’s conditional “yes in principle.” It states an amount and outline terms, subject to final checks, documents, and due diligence. It is stronger than an eligibility pass, but not legally binding.

These steps exist to save time for you and for lenders. By moving from broad indication to conditional approval, everyone reduces guesswork and avoids unnecessary applications. You stay in control at each stage.

Best Business Loans is an independent introducer that helps you navigate these steps. We do not supply loans or set rates. We connect established UK businesses with suitable funders and brokers through AI-driven matching.

If you operate in time-sensitive sectors like transport, a DIP can support negotiations with suppliers or customers. For example, firms researching logistics business loans often use a DIP to evidence finance intent when bidding for contracts. Right-sized certainty can be a commercial advantage.

What each step checks, and what you’ll typically need

Quick Quote inputs are simple and fast. You’ll provide business basics, funding purpose, rough figures for turnover, and amount requested. Outputs are indicative ranges for amount, likely term, and guide APR or fee structures.

Eligibility Checks compare your profile with current lender policies. Criteria usually include time trading, annual revenue, sector, credit health, and affordability indicators. Many providers use a soft credit search that does not impact your score, but always check permissions.

DIPs require more detail because the lender is taking a conditional position. You may be asked for bank statements, filed accounts or management accounts, VAT returns, ID/AML documents, and details of existing finance. For asset or invoice finance, asset schedules or debtor books may also be required.

Turnaround times differ by step and product type. Quick Quotes are often instant or within minutes. Eligibility outcomes can arrive the same day, while DIPs typically take 1–3 working days once documents are complete.

Accuracy increases as you progress. Quick Quotes are based on the information you enter and market norms. Eligibility uses live criteria and verified signals, and a DIP aligns with preliminary underwriting, subject to full due diligence.

Here’s a compact comparison for clarity:

Credit impact, accuracy, and practical considerations

Quick Quotes do not require a credit check. They are for orientation, not assessment. Use them to frame your expectations and shortlist options.

Eligibility Checks often use a soft search that is visible to you but does not impact your score. Some providers may proceed without a search at this stage, relying on bank feeds or open banking data. If a hard search is ever required, you will be asked for explicit consent.

DIPs sometimes trigger a hard search, because the lender is committing conditional resources to your case. Not all DIPs require a hard search, but many do. Always check and consent before proceeding.

Accuracy rises as lenders see verified data. Bank statements reveal cash flow patterns, returned items, and seasonality. Accounts and management information add context on profitability and debt servicing capacity.

Be prepared for product-specific nuances. Invoice finance providers prioritise debtor quality and concentration risk. Asset finance providers care about asset type, age, and resale value.

Keep timelines realistic. Complex cases, multiple facilities, or higher loan amounts can lengthen DIP timeframes. Clean documentation and responsive communication help keep things moving.

When to choose each option, and how Best Business Loans helps

Choose a Quick Quote when you are exploring options and sanity-checking affordability. It’s ideal before you speak with your board, co-directors, or accountant. Use it to set expectations internally.

Choose an Eligibility Check when you want to avoid wasted applications. It’s a smart step if you have had past declines or operate in a niche sector. It helps you focus on providers most likely to support your case.

Choose a DIP when you need credible intent for negotiations, tenders, or timing-critical purchases. A DIP can strengthen supplier relationships and help with cash flow planning. It still isn’t a final offer, but it carries practical weight.

How we help: Best Business Loans uses AI to match your profile with active lenders and vetted brokers. We prioritise sector appetite, facility fit, and speed-to-funds. You decide who to engage with; there’s no obligation.

Our process is simple and free to start. Complete a Quick Quote in minutes, then request an Eligibility Check if you’re ready to proceed. If a DIP is appropriate, we’ll introduce you to providers who can issue one, subject to their checks.

Important notes and fair, clear messaging: we don’t offer loans or provide regulated advice, and we can’t guarantee the lowest rate. All finance is subject to status, affordability, and lender criteria. Terms, fees, and rates may change and depend on your specific circumstances.

FAQs, compliance notes, and key takeaways

FAQs

What is the main difference between an Eligibility Check and a DIP? An Eligibility Check indicates likelihood of acceptance, while a DIP is a lender’s conditional intent to lend, subject to final checks. A DIP may involve additional documentation and sometimes a hard credit search with your consent.

Will a Quick Quote or Eligibility Check affect my credit score? A Quick Quote does not involve a credit search. Eligibility Checks often use soft searches that do not affect your score; if a hard search is required, you will be asked for permission first.

Is a Decision in Principle legally binding? No, it is conditional. It outlines amount and terms in principle, pending verification, underwriting, and final approval. The final offer may differ based on the evidence provided.

How long does each step take? Quick Quotes: minutes. Eligibility Checks: hours to one business day in many cases. DIPs: typically 1–3 working days once documents are received, though complex cases can take longer.

What documents might I need for a DIP? Common requests include recent bank statements, filed or management accounts, ID/AML documents, VAT returns, and details of existing finance. Asset or invoice finance may require asset schedules or debtor lists.

Does Best Business Loans provide the finance? No. We are an independent introducer that connects established UK businesses with suitable lenders and brokers. We help you navigate the journey, but we do not lend or set the terms.

Compliance notes

• Information on this page is for established UK businesses and is not personal financial advice.
• All finance is subject to status, affordability checks, and lender criteria; terms and rates can change.
• We aim to ensure promotions are fair, clear and not misleading, in line with FCA, ASA and Google policies.
• Where credit searches are required, providers will request your permission and explain the type of search.
• We currently don’t support start-ups, sole traders, franchises, property finance, or commercial mortgages.

Key takeaways

• Quick Quote: fast, indicative guidance to frame expectations and compare routes.
• Eligibility Check: assesses your likelihood of acceptance against live criteria, often via a soft search.
• Decision in Principle: conditional statement from a lender that they’re prepared to lend, subject to final checks.
• Use Quick Quote to explore, Eligibility to focus, and DIP to proceed with confidence.
• Best Business Loans helps you move through these steps quickly by matching you with suitable providers.

Next steps

Ready to explore finance options for your business? Complete your Quick Quote to see indicative options, then request an Eligibility Check or a DIP when you’re ready to progress. It’s fast, secure and free to submit an enquiry.

Start your Quick Quote now