Whether you are looking to fund new equipment, acquire vehicles, release capital from assets you already own, or secure a business loan for growth, the way you prepare for a business finance application can make a significant difference to the outcome. Lenders assess applications against their own criteria, and a well-prepared application is more likely to be presented in the strongest possible light.

In this guide, Percy Finance outlines what businesses can do to prepare for a finance application — covering what lenders typically consider, the documentation commonly required, and how working with an independent broker can help ensure your application is introduced to the most appropriate lender for your circumstances. This article is for information purposes only and does not constitute financial advice.

Understand What You Need and Why?

Before approaching any lender or broker, it is worth taking the time to be clear about exactly what you need and why. This means identifying the specific asset, facility, or funding amount required, the purpose it will serve in the business, the term over which you would ideally repay, and how the repayments will be serviced from the business’s cash flow.

Having clear answers to these questions not only helps a broker identify the most appropriate lenders and products for your circumstances — it also demonstrates to lenders that you have considered your requirements carefully, which strengthens the credibility of your application. Finance is subject to status and affordability assessment regardless of how well-prepared your application is, and there is no guarantee that any specific facility will be available.

What Do Lenders Typically Look For?

While every lender has its own criteria and appetite, there are a number of factors that are commonly assessed as part of a business finance application. Understanding these in advance can help you identify any areas to address before an application is submitted.

Trading History and Business Profile

Lenders will typically want to understand how long the business has been trading, what it does, and the sector it operates in. Businesses with a longer trading history and a clear, stable business model are generally viewed more favourably by mainstream lenders. Start-ups and younger businesses are not automatically excluded — specialist lenders exist for businesses with limited trading history — but the range of lenders available may be narrower and criteria more specific.

Financial Performance

Lenders will typically assess the financial performance of the business through filed accounts, management accounts, or bank statements — depending on the type of facility and the lender’s requirements. Key considerations generally include turnover, profitability, and cash flow. A business that can demonstrate consistent revenue and the ability to service repayments from its trading cash flow is in a stronger position than one with irregular or declining income. Always ensure your accounts are up to date before making any application.

Credit Profile

Most lenders will conduct credit searches on the business and, in many cases, on the directors personally as part of the application process. A clean credit history — with no County Court Judgements (CCJs), defaults, or missed payments — will generally support a stronger application. If there are historical credit issues, it is worth discussing these with a broker before applying, as some specialist lenders are more accommodating of complex credit histories than mainstream providers. Each application is assessed on its individual merits and there is no guarantee of approval.

Affordability

Lenders will assess whether the business can comfortably afford the proposed monthly repayments in the context of its overall financial position. This is an assessment of the business’s ability to service the debt from its trading cash flow without placing undue pressure on its finances. Preparing a clear picture of your current financial commitments alongside the proposed new facility will help demonstrate affordability to the lender.

The Asset or Purpose of Borrowing

For asset finance and vehicle finance specifically, lenders will also assess the asset being financed — including its type, age, condition, and value. The acceptability of any specific asset is determined by the lender at the time of application and cannot be guaranteed in advance. For unsecured business loans, the purpose of borrowing will typically be discussed as part of the application process.

Documentation Commonly Required

Documentation requirements vary between lenders and product types, but businesses applying for finance should generally be prepared to provide some or all of the following — depending on the facility and the lender’s specific requirements:

  • Filed accounts — typically the last one to three years of filed accounts for the business. These can be obtained from Companies House if needed.
  • Management accounts — for more recent financial information, particularly if the last filed accounts are more than six months old.
  • Bank statements — typically three to six months of business bank statements, showing trading activity and cash flow.
  • Proof of identity and address — for the directors or principals of the business, as part of standard Know Your Customer (KYC) checks.
  • Details of the asset or facility required — for asset finance, details of the specific asset including make, model, age, condition, and purchase price where applicable.
Having these documents prepared and readily available before an application is submitted can speed up the process significantly. Your accountant will be able to assist with financial documentation.

How Working with a Broker Can Help

One of the practical advantages of working with an independent broker like Percy Finance is that we can help you understand what lenders are likely to look for before an application is submitted — and introduce your requirements to lenders whose criteria are most appropriate for your specific circumstances.

Approaching lenders directly without knowing their criteria can result in unnecessary credit searches on your business or personal credit file, which can have a negative impact if multiple searches are conducted in a short period. A broker can help manage this by identifying the most suitable lenders before any formal application is made.

Percy Finance is an independent credit broker, not a lender. We are remunerated by way of a commission paid by the lender if a finance agreement is arranged — this will always be disclosed to you before any agreement is entered into. There is no obligation to an initial conversation.

Other Finance Solutions Percy Finance Can Introduce You to

Percy Finance can introduce businesses across the UK to lenders across a wide range of funding solutions — including asset finance, hire purchase, finance lease, vehicle finance, asset refinancing, business loans, corporation tax loans, and more. Whatever your business needs, our team works across the market to identify lenders suited to your individual circumstances. We regularly introduce clients to lenders across the following areas:

Looking for business finance?
Our team at Percy Finance is here to help you compare your options and secure the right funding for your business.