What documents do you need for a business loan?

Lenders ask for documents to answer three questions: who are you, can the business afford the repayments, and what happens if it can't. The bigger the amount and the longer the term, the more evidence they want.

This guide is organised as a checklist. Start with the documents every application needs, then add the ones that match your business and the type of finance you're after.

Every application

Almost every lender will want these, whatever the size of the loan.

• Business bank statements. Usually the last three to six months, covering every account the business uses. Many lenders now ask you to connect your account through Open Banking instead, which gives them read-only access to your transactions for a limited time, with your permission. It's quicker and avoids questions about whether a PDF is genuine.
• Photo ID for each owner or director, such as a passport or driving licence. Many lenders check this electronically.
• Proof of address for each owner or director, such as a recent utility bill or bank statement. Electronic checks often replace this too.
• Business details. Your registered name, address, company number if you have one, how long you've traded and what the business does.
• What the money is for. A sentence or two is often enough for a small loan. For anything larger, be specific.

Limited companies and LLPs

• Filed accounts. Your most recent full-year accounts, and often the year before. Lenders can see what you've filed at Companies House, so make sure it's up to date. Overdue filings are a common reason for delays and declines.
• Management accounts. A recent profit and loss account and balance sheet, from your bookkeeping software or your accountant. These matter most when your filed accounts are getting old, or when the business has changed since they were prepared.
• VAT returns. The last few, if you're VAT registered. They're a quick, independent check on turnover.
• Details of all directors and significant shareholders. Lenders usually check the personal credit of directors, and may ask those with a large shareholding for a personal guarantee.

Sole traders and partnerships

You don't file accounts at Companies House, so lenders look to your tax records instead.

• Self assessment tax calculations and tax year overviews, usually for the last one or two years. You can download these from your HMRC online account. Lenders often call the calculation an SA302.
• Accounts or a profit and loss summary, if your accountant prepares them.
• Personal bank statements, if you mix business and personal money in one account, or as well as business statements.
• Partnership agreement, for partnerships.

A note on regulation: loans of £25,000 or less to sole traders and small partnerships are regulated by the FCA. Lenders offering them follow stricter affordability rules, so they may ask more about your personal income and outgoings.

Larger or secured loans

As the amount grows, lenders want to see further ahead and understand your other commitments.

• A debt schedule. A simple list of every loan, overdraft, credit card, cash advance, finance agreement and HMRC payment plan the business has, with the lender, balance, monthly payment and end date. Include anything personally guaranteed.
• Aged debtors and aged creditors. Lists of who owes you money and who you owe, sorted by how long each amount has been outstanding. They show how quickly customers pay and whether you're behind with suppliers.
• Cash flow forecasts. Usually 12 months, showing the repayments built in. Lenders look for realistic numbers, not optimism.
• A business plan. For bigger loans, start-ups, acquisitions or expansions. It needn't be long, but it should explain what the money does and how it pays for itself.
• Details of security. For a secured loan, information about the property or assets offered, including any existing mortgage or charge on them.
• Personal assets and liabilities statement. Sometimes requested from guarantors, listing what they own and owe.

Specific types of finance

Some products need extra documents tied to what's being financed.

For vehicles and equipment, see van and HGV finance. For tax bills, see borrowing to pay a VAT or tax bill.

Why lenders ask for each document

An illustration. Sam runs a limited company and applies for a £60,000 loan to buy equipment and stock. The first submission includes bank statements and last year's accounts, which are ten months old. The lender asks for current management accounts, then a debt schedule, then an explanation for a large payment out of the account, and three weeks pass. Had Sam sent recent management accounts, a debt schedule and a line explaining the payment at the start, the lender would have had everything at once. This is an example of a common pattern, not a promise of timing.

Tips that speed up approval

• Send everything at once. Each back-and-forth adds days. If you're unsure whether a lender needs something, include it.
• Make the numbers agree. Turnover in your accounts, VAT returns and bank statements should tell the same story. Where they don't, explain why, for example a big one-off contract.
• Explain anything unusual before you're asked. A large one-off payment, a dip in income, a payment to HMRC, a transfer to a director. A short note saves a round of questions.
• Use Open Banking if offered. It's usually faster than uploading statements, and you can choose to stop sharing.
• Keep Companies House up to date. File accounts and confirmation statements on time, and make sure the directors and registered address are correct.
• Ask your accountant early. Current management accounts and forecasts can take a few days to produce.
• Be complete about existing debt. Lenders see a lot from credit files and bank statements. Leaving something off your debt schedule damages trust more than the debt itself.
• Send clear, complete files. Whole PDF statements downloaded from your bank, not photos or screenshots, and every page.

If you've been declined before, missing or inconsistent paperwork may have been part of the reason. See what to do when a business loan is declined.

Common mistakes to avoid

• Sending only one account's statements when the business uses several.
• Relying on old filed accounts without recent management figures.
• Leaving out a cash advance or finance agreement that's visible in your bank statements.
• Mismatched names and addresses between your ID, your bank and Companies House.
• Sending documents by unsecured email to someone you haven't checked. Bank statements and ID are valuable to fraudsters. Only send them to a lender or broker you've verified.

Questions people ask

How many months of bank statements do I need for a business loan?

Most lenders ask for the last three to six months of business bank statements, covering every account the business uses. Larger loans may need twelve months. Many lenders let you connect your account through Open Banking instead of uploading statements.

Do I need accounts to get a business loan?

For a limited company, lenders usually want your latest filed accounts and, if they're more than a few months old, recent management accounts. Newer businesses without a full year of accounts can still apply to some lenders, which will lean more on bank statements.

What documents does a sole trader need for a business loan?

Usually bank statements, ID and proof of address, and your self assessment tax calculations and tax year overviews for the last one or two years. Some lenders also ask for accounts prepared by your accountant.

What is a debt schedule?

A debt schedule is a list of all the business's existing borrowing, including loans, overdrafts, credit cards, cash advances, finance agreements and HMRC payment plans. For each one, show the lender, balance, monthly payment and end date. Lenders use it to judge how much more the business can afford.

Is it safe to connect my bank account through Open Banking?

Open Banking connections go through FCA-regulated providers and give read-only access to your transactions. The provider can't move money, and you can withdraw access at any time. Only connect through a lender or broker you've checked is genuine.