What is the difference between approval and drawdown?

Approval is a conditional yes

An approval — sometimes called an offer or agreement in principle at the softer end — confirms the lender is willing to fund you, subject to conditions. Those conditions might be a signed agreement, verified bank data, or a valuation. Until every condition is met, no money moves. Read how the yes is reached in the underwriting-process guide.

Drawdown is the money moving

Drawdown is the act of the lender releasing funds to you. For an unsecured facility this usually happens the same banking day you accept, subject to payment cut-offs. For a term loan you typically draw the full amount at once; for a revolving or flexible facility you draw in tranches as you need them.

What can go wrong in the gap

Approvals can lapse if you do not accept in time, and conditions can change if your circumstances change before drawdown — a new charge on the company, a missed payment, or a fresh application elsewhere. Move promptly once approved. To plan repayments from day one of drawdown, use the repayment calculator, and see when funds land in this answer.