What do lenders check on a business loan application?

Trading history and cash flow

The first thing most working-capital lenders assess is how the business actually trades. They look at revenue flowing into the business bank account, how regular and stable that income is, and whether the company comfortably covers its outgoings. Cash flow is the single most important signal because it shows whether repayments are affordable in practice. A company with steady, healthy cash flow is in a strong position even if other parts of the picture are imperfect.

Bank statements and accounts

Recent business bank statements are the evidence behind the cash-flow picture — they confirm real activity rather than estimates. Lenders read them for turnover, patterns of income and spending, and any signs of strain such as repeated unauthorised overdraft use. Filed accounts and returns add context about the company's overall financial health. Clean, well-ordered statements make an application faster and stronger.

For the full checklist, see what documents you need for a business loan.

Credit standing and purpose

A lender will look at the company's credit standing, and in some cases the director's, to understand its history of meeting obligations. It will also want to know what the funds are for — working capital, stock, a short-term gap — because purpose helps it judge whether the amount and term make sense. Because Credicorp lends to the limited company rather than the director, the company's own standing and trading carry the most weight in the decision.

What this means for your company

To put your best application forward, keep the business bank account active and tidy, separate company and personal money, file on time, and be clear about how much you need and why. None of this is about presentation for its own sake — it is the same evidence the lender uses to say yes. The cleaner and more consistent your trading record, the simpler the decision becomes.