What Documents Do I Need for a Business Loan?

Having your documents ready before you apply is one of the simplest ways to help a business finance application run smoothly. Most providers ask for broadly similar information, although the exact list depends on the provider, the product and the amount requested.

Use the checklist below as a starting point. The provider will confirm precisely what it needs for your application.

Company and director details

• Company name, registered number and registered office address
• Trading address, if different
• A short description of what the business does and how long it has traded
• Details of all directors, and of shareholders or persons with significant control
• Photo identification and proof of address for directors, and sometimes for significant shareholders

Identity checks form part of a provider's anti-money laundering obligations, so expect them even if you have borrowed before. Check that the information held at Companies House is up to date, because providers will compare what you send with the public record.

Financial documents

• Filed accounts. Usually the most recent year-end accounts, and often the previous year too, so the provider can see a trend.
• Management accounts. A recent profit and loss account and balance sheet showing trading since the last year end.
• Business bank statements. Recent statements for every business account, ideally downloaded from online banking rather than scanned.
• VAT returns. If the business is VAT registered.
• Tax position. Details of any amounts owed to HMRC and any payment arrangement in place.

Make sure the figures are consistent across documents. If the management accounts and bank statements tell different stories, the provider will ask why. Our guide to the financial information business lenders review explains what providers look for in these numbers.

Existing borrowing and commitments

Providers need a full picture of what the business already owes. Prepare a simple schedule showing, for each facility:

• the type of finance, such as a loan, overdraft, asset finance agreement or credit card
• the provider's name and outstanding balance
• the monthly repayment
• the end date
• any security or guarantee given

Include vehicle and equipment finance agreements, leases and any loans between the company and its directors. Disclose everything. Borrowing that has been left out usually shows up on credit searches or bank statements and can undermine an otherwise sound application.

Forecasts and business plan, where relevant

Not every application needs a forecast. One often helps where the funding is for growth, a new contract, new premises or a newer business with limited trading history. Useful items include:

• a cash flow forecast showing the effect of the funding and the repayments
• a short business plan or summary explaining what the funding is for
• supporting evidence such as signed contracts, purchase orders or tender awards

Keep assumptions realistic and be ready to explain how you arrived at them. Your accountant may be able to help prepare or review a forecast.

Product-specific documents

Some types of finance need extra information.

For invoice finance:

• an aged debtor report, showing who owes the business money and how long each invoice has been outstanding
• an aged creditor report
• sample invoices and your standard terms of trade
• details of your main customers and any customer contracts

For asset finance:

• a supplier quote or invoice for the asset
• the specification, and for used vehicles or equipment, details such as age and condition
• the supplier's details

Sector-specific items. Some providers ask for information particular to your industry. For example, construction businesses may be asked about contracts, applications for payment and retentions, while haulage businesses may be asked about their operator's licence. Our industries pages cover sector considerations in more detail.

A commercial finance intermediary such as Emirex Finance can help you organise this information before it goes to a provider.

Key points

• Expect to provide company details, director identification, filed accounts, management accounts and bank statements.
• Prepare a complete schedule of existing borrowing and disclose everything.
• Add a forecast or short plan where the funding is for growth or a new venture.
• Invoice finance and asset finance need additional product-specific documents.

This guide is general information, not financial, legal or tax advice. Finance is subject to status, eligibility and approval by the relevant finance provider. Emirex Finance works with UK limited companies only and is not authorised or regulated by the FCA.