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Stage 1: Initial enquiry
Most lenders begin with a soft or indicative enquiry that establishes your borrowing requirement, purpose, trading history and rough financial position. This is used to confirm the lender can consider your type of request before you invest time in a full application. At this stage you should disclose any significant credit events — CCJs, defaults, or prior insolvencies — rather than allow them to surface later.
Stage 2: Application and document submission
You will complete a formal application form and supply your document pack. See the full document checklist for what to prepare. Incomplete submissions are returned for additional information, which extends the process. Providing everything at once is the single most effective way to accelerate a decision.
Stage 3: Credit and underwriting assessment
The lender runs identity checks, searches company credit files and — where a personal guarantee is involved — director credit files. An underwriter reviews the financials against the lender's lending criteria, confirms the stated purpose, and may raise queries for clarification. For larger or secured facilities, a credit committee may need to approve the case.
This stage typically takes between a few hours and two working days for standard applications. See how long a lending decision takes.
Stage 4: Formal offer
If approved, the lender issues a written credit agreement or facility letter setting out the amount, term, repayment schedule, interest rate, any security requirements, and all fees. Read this carefully before signing. For regulated commercial agreements — rare in B2B lending — you may have a statutory reflection period; for unregulated commercial loans no cooling-off period applies unless the lender offers one voluntarily.
Stage 5: Completion and drawdown
Once you sign and return the agreement — and, where applicable, security documentation is executed — the lender releases funds. Drawdown is typically processed the same or next business day. See when money is paid out for detail on what can delay this final step.
Frequently asked questions
Can I negotiate the terms in the formal offer?
Yes. The credit agreement is not always take-it-or-leave-it. Rate, term length, and fee structure are all potentially negotiable, particularly if you have a strong application or competing offers from other lenders.
What happens if my application is declined?
Ask the lender for the reason. You are entitled to know if a credit reference agency report was used. Allow any credit searches to age before applying elsewhere, and consider whether a different product type — asset finance, invoice discounting — might better suit your needs.
Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.