Will the initial checks be a soft search, and will they affect my credit score?
Quick answer: what to expect from initial checks
Yes — in most cases the initial checks you encounter when making an enquiry are soft searches and they will not harm your personal credit score. These checks are typically used to determine likely eligibility and to match you with suitable lenders or brokers without leaving a visible, damaging footprint on your credit file.
How Best Business Loans handles initial checks
As an introducer, Best Business Loans uses soft, non-invasive eligibility checks for Quick Quotes and Decision in Principle (DIP) matching. We do not perform hard credit searches at this stage and we won’t submit your details to lenders without your explicit consent. Our process is designed to protect your credit profile while helping you find suitable lenders or brokers quickly.
Why confirm the search type before you proceed
Different lenders and brokers have different policies, so it’s important you confirm whether the next step involves a soft or hard search. You should always be told in advance if a provider intends to carry out a hard credit check, particularly where a personal guarantee is requested or where the lender requires a full application check.
What is a soft search and what does it show?
A soft search (also called a soft enquiry) is a non-impacting credit check used to assess affordability or likely eligibility. Soft searches do not affect credit scores and are not visible to other lenders when they assess your credit file.
Where soft searches are used
Brokers, introducers and many lenders use soft searches for preliminary screening, quick quotes and Decision in Principle checks. These checks let providers see basic credit data or affordability indicators without creating a record visible to other lenders.
What information a soft search can access
Soft searches can access name, address history and some summary data held by credit reference agencies, plus any public record data. For businesses, soft checks often use company registration, filed accounts and business credit agency datasets rather than personal credit histories.
What is a hard search and when is it used?
A hard search (full credit search) is a formal credit enquiry that appears on your personal credit report and may be visible to other lenders. Hard searches are usually performed when you submit a full application or when a lender needs to make a definitive lending decision.
When lenders typically do hard searches
Expect a hard search when a lender issues a formal offer, asks for a personal guarantee, or needs to verify detailed credit and affordability data. Hard searches are also common for unsecured or consumer-style business loans where personal credit plays a central role in underwriting.
How hard searches affect your credit score
A hard search can reduce a personal credit score by a small amount for a short period. The exact impact varies by credit reference agency and your overall credit profile. The effect usually diminishes within 6–12 months, though the search remains visible for up to 2–3 years depending on the agency.
Business credit checks vs personal credit checks
Commercial lenders often rely on business credit data rather than personal credit files, particularly where finance is based on company performance and assets. Business credit agencies such as Experian Business, Equifax Business and Creditsafe hold company-level records that lenders use for underwriting.
When personal credit is still relevant
If your company is small, or if the lender requires a director’s guarantee, the lender may check directors’ personal credit histories. In those cases a hard search of the director’s personal file is likely if the lender needs formal confirmation before making an offer.
Practical difference for UK SMEs
For many established SMEs applying for asset finance, invoice finance or refinancing, initial eligibility and matching are based on corporate accounts and trade history rather than multiple hard personal searches. This makes using an introducer like Best Business Loans helpful to reduce unnecessary hard enquiries.
How to protect your credit score during the funding journey
Ask providers whether they will use a soft or hard search before you agree to any checks. If a lender plans a hard check, request clear confirmation and consider delaying until you shortlist providers you genuinely want to apply to.
Use soft-search tools and agreement-of-intent steps
Start with Quick Quotes and soft eligibility checks to identify realistic options without creating hard footprints. Our AI-driven matching system performs soft checks to connect you with lenders likely to consider your business, reducing the need for multiple hard searches.
Checklist before submitting a full application
Confirm whether a hard search is required, check if a director’s personal guarantee will be asked for, and review the specific credit reference agencies involved. These steps help you make informed decisions and avoid unnecessary score impacts.
What we recommend and next steps
If you want to explore options safely, use Best Business Loans’ Quick Quote to get soft eligibility feedback and a tailored shortlist. Our platform matches you to lenders and brokers using initial soft checks so you can compare without harming your credit file.
When you might expect a hard search
Be prepared for hard searches at the formal application stage or where a lender needs to verify personal credit for guarantees. We will always tell you when a lender requests a hard search and will not proceed without your consent.
How to proceed now
Complete our Quick Quote to get a no-obligation Eligibility check, or ask for a Decision in Principle where available. If you are considering refinancing, we can match you with providers who specialise in that area — find out more here: https://bestbusinessloans.ai/loan/refinance/.
Compliance and transparency
Best Business Loans is an independent introducer and does not provide credit or issue loans directly. We operate as a matchmaker between UK businesses and finance providers and we will always be transparent about whether a lender will carry out a soft or hard search.
Key takeaways
- Initial checks for Quick Quotes and most Decision in Principle enquiries are normally soft searches and do not affect your credit score.
- Hard searches occur for formal applications, offers, or when a personal guarantee is requested and can temporarily affect your personal credit score.
- Business credit checks often rely on company data and may not show on personal files unless a director is involved.
- Always ask whether a check will be soft or hard before you consent, and limit full applications to a few preferred lenders.
- Use Best Business Loans’ soft eligibility checks to explore options safely and get matched to appropriate lenders or brokers.
If you’d like personalised guidance or an eligibility check using soft searches only, start a Quick Quote with us today. Our service is free, confidential and designed to protect your credit profile while finding the best available finance pathways for your business.
Contact us at hello@bestbusinessloans.ai if you want help before submitting your quick quote, or proceed now for an instant eligibility check and tailored matches.
About Best Business Loans
Best Business Loans is a UK-based introducer using AI-driven matching to connect established SMEs with suitable lenders and brokers. We do not lend directly and we are not an FCA-authorised lender; we follow clear, non-misleading communications and will always disclose if a lender plans a hard credit check.