What’s the difference between a Quick Quote, Eligibility Check and Decision in Principle?
The short answer
A Quick Quote gives you an instant, informal estimate of potential funding and costs based on basic details you provide. An Eligibility Check assesses whether your business is likely to meet a lender’s criteria, often with a soft search and a deeper look at your figures. A Decision in Principle (DiP) is a conditional indication from a finance provider that they’re prepared to lend in principle, subject to full underwriting, verification and any conditions being met.
Think of it as three steps on the same path: quick estimate, likely eligibility, then conditional comfort. None of these are a final loan offer or a guarantee of funding.
Why these stages exist in UK business finance
Lenders and brokers use these steps to filter applications efficiently and to reduce unnecessary credit searches. You get clarity before committing time, documents and formal applications. This staged approach supports clear, fair and not misleading expectations for UK businesses.
What is a Quick Quote?
A Quick Quote is a fast, indicative estimate of how much you could borrow, the type of finance that might suit, and an outline of expected costs. It’s based on the information you enter and broad market criteria rather than a full assessment. It helps you set ballpark expectations and decide whether to explore further.
Most Quick Quotes are generated without a hard credit search. Some providers may perform anti-fraud or soft checks to validate high-level information. Quotes are not binding and may change after deeper review.
What a Quick Quote tells you
You’ll typically see an estimated funding range, an indicative rate or fee band, and possible terms. You may also get suggestions for suitable products such as asset finance, invoice finance, or working capital loans. It’s designed to save time and guide your next step.
Typical inputs and outputs
- Inputs: Company name, sector, years trading, turnover, profit trend, funding purpose and amount, VAT status.
- Outputs: Estimated loan size, likely term range, broad interest rate or fee guidance, notes on suitability.
At Best Business Loans, your Quick Quote helps our AI-led matching system shortlist relevant lenders and brokers. We don’t supply finance ourselves, but we do introduce you to providers that align with your profile.
Pros and cautions
- Pros: Fast, no obligation, no hard search, useful orientation before sharing documents.
- Cautions: Not a decision, not an offer, and figures can change after assessment.
Use a Quick Quote when you want a rapid sense-check before you invest effort in a formal enquiry. It’s a starting point, not a commitment.
What is an Eligibility Check?
An Eligibility Check goes deeper than a Quick Quote to assess the likelihood of approval against the specific criteria of active lenders. It may use a soft search, bank statement insights, or basic financial ratios. The aim is to gauge whether your application is realistically on track.
Expect questions about trading history, debt levels, CCJs, missed payments, and recent performance trends. Some providers will ask for recent management accounts, VAT returns or Open Banking access for pre-assessment.
What lenders commonly assess
- Stability: Years trading, sector risk, director history, and any adverse credit markers.
- Affordability: Turnover, gross margin, operating profit, and existing commitments.
- Purpose and security: What the funds are for and whether assets or invoices support the facility.
An Eligibility Check still isn’t an offer. It’s a realistic filter that helps you avoid unnecessary hard searches and work with providers who tend to say “yes” to businesses like yours.
Soft search versus hard search
Soft searches do not leave a visible mark on your credit file to most lenders, while hard searches do. Many business finance providers use soft searches at the eligibility stage, but practices vary by lender and product. Always check consent notices so you know what kind of search will be performed.
What you can expect to receive
- A list of suitable providers or products you are likely to qualify for.
- Refined rate and term guidance that reflects lender appetite and criteria.
- Clarity on next steps, documents, and timelines toward a Decision in Principle.
Best Business Loans uses your details to connect you to providers that appear to match your profile and goals. You then decide which introductions to pursue, without obligation.
What is a Decision in Principle (DiP)?
A Decision in Principle (sometimes called an Agreement in Principle or heads of terms) is a conditional indication from a lender or brokered lender that, subject to full underwriting and verification, they’re prepared to proceed. It usually includes a proposed facility size, an indicative price, and key conditions.
A DiP signals that the lender has reviewed more detail, often including recent financials, Open Banking data, or asset schedules. However, it is still not the final loan agreement and can change if the full assessment uncovers issues.
What a DiP includes
- Indicative facility amount and type (e.g., term loan, asset finance, invoice finance).
- Proposed pricing, fees, and term, subject to credit approval.
- Conditions precedent (documents or checks required before drawdown).
Some DiPs are time-limited, reflecting current risk appetite and market rates. If your circumstances change, the DiP may be revised or withdrawn.
Typical limits and validity
- Validity: Often 14–60 days, depending on provider and product type.
- Dependencies: Satisfactory underwriting, valuation reports, legal due diligence, and identity checks.
- Outcome: A faster route to a formal offer once conditions are met and information is verified.
Quick comparison
| Stage | Speed | Data depth | Credit footprint | Accuracy | Binding? |
|---|---|---|---|---|---|
| Quick Quote | Minutes | Light | Usually none/soft | Indicative only | No |
| Eligibility Check | Same day–48h | Moderate | Often soft, varies | More reliable | No |
| Decision in Principle | 24h–7 days | Deeper | Soft or hard, varies | Most realistic | Conditional only |
Which one should you choose first?
Start with a Quick Quote if you want a fast indication of what’s possible without heavy paperwork. Move to an Eligibility Check when you’re ready to narrow down providers and understand realistic terms. Request a Decision in Principle once you’ve chosen a direction and can supply the necessary documents.
If you need to update equipment urgently, a Quick Quote can frame affordability, then an Eligibility Check will confirm the likely route, and a DiP will help you plan timing. For sectors with complex funding such as construction or manufacturing, the Eligibility Check often saves weeks by focusing on the right lenders from the outset.
A simple pathway from quote to funds
- Submit a Quick Quote with your basic business details and funding purpose.
- Complete an Eligibility Check to align with lenders that fit your profile.
- Provide documents for a Decision in Principle to secure conditional terms.
- Proceed to full underwriting, legal checks and final offer.
- Draw down funds once conditions are satisfied.
If you’re exploring options for growth or working capital, see our guide to small business loans and how funding works for established UK SMEs.
Documents that speed things up
- Last two years’ accounts, latest management accounts, and recent bank statements.
- Debtor/creditor lists, aged receivables, and asset schedules where relevant.
- Proof of ID/address for directors and beneficial owners, plus key contracts if requested.
Providing clear, accurate documents early often turns a DiP into a formal offer faster. The more complete your information, the smoother the underwriting.
Compliance, transparency and your next step
Financial promotions should be clear, fair and not misleading. Quick Quotes, Eligibility Checks and DiPs are not final offers, and rates or terms can change following full assessment. Any credit search activity will be conducted by the provider you choose and disclosed to you before it happens.
Best Business Loans is an independent introducer that helps UK businesses connect with suitable finance providers. We don’t lend directly, and we don’t provide financial advice; you remain in full control of your decisions.
What to expect after you enquire
- No obligation: Submitting a Quick Quote or Eligibility Check is free and non-binding.
- Data handled with care: We only introduce you to relevant lenders or brokers for your enquiry.
- Transparent next steps: You’ll see what’s needed for a DiP and an indicative timeline to completion.
Ready to explore funding options for your business with zero obligation? Start with a Quick Quote and let our AI-led process match you to suitable providers. You can then request an Eligibility Check or a Decision in Principle when you’re comfortable to proceed.
Start now
It takes minutes to begin, and you can stop at any stage. Submit your details, compare your options, and choose what’s best for your business.
FAQs: Quick Quote vs Eligibility Check vs Decision in Principle
Does a Quick Quote affect my credit score?
Generally, no. A Quick Quote is based on information you supply and does not usually involve a hard credit search. Always read the provider’s consent notice to confirm whether any soft checks are used.
Is a Decision in Principle a guarantee of funding?
No. A DiP is conditional and subject to full underwriting, verification and any conditions being met. Final terms may differ once all checks are complete.
How long is a DiP valid for?
Many DiPs are valid for 14–60 days, depending on the product and provider. If rates or your business circumstances change, the DiP may be revised or withdrawn.
Can I request a DiP from more than one provider?
You can, but consider the impact on time, document effort and potential credit searches. Working through an introducer can help you target the most relevant providers first.
What documents help with an Eligibility Check or DiP?
Recent management accounts, bank statements, annual accounts, and where relevant, VAT returns and aged debtor reports. Proof of ID and address for directors is usually required before drawdown.
Key takeaways
- A Quick Quote is a fast, indicative estimate to help you sense-check options.
- An Eligibility Check assesses your likelihood of approval against lender criteria.
- A Decision in Principle is a conditional indication subject to full underwriting.
- None of these stages is a final loan offer or a guarantee of funding.
- Start with a Quick Quote to save time, then progress to Eligibility and a DiP when ready.
About Best Business Loans
BestBusinessLoans.ai helps established UK companies navigate business finance with confidence. We use AI-driven matching and a network of lenders and brokers to introduce you to suitable providers.
We are an independent introducer, not a lender, and we don’t provide financial advice. Information on this page is for guidance only and may be updated as criteria and market conditions change.
Updated: October 2025