Funding information: Aarubi Finance Ltd is not authorised or regulated by the Financial Conduct Authority. We provide Merchant Cash Advance services with YouLend and 365 Finance and may introduce eligible businesses to selected unregulated commercial finance providers. We do not provide consumer credit, regulated mortgages or personal financial advice. Eligibility and terms apply. This article is general information, not individual financial, legal or tax advice.
A business loan checklist should help you prepare an accurate application and judge the commitment. It cannot guarantee approval. Nor does a provider's approval prove that the remaining cash will be enough for your business.
See our business finance eligibility FAQs for quick answers before you apply.
Define the amount and purpose
Write down what the money will buy, when it is needed and how the business will meet the payments. Separate essential spending from optional expansion. Include installation or associated costs where relevant, rather than applying for a headline purchase price that leaves a shortfall.
Check the provider's criteria first
Confirm the accepted business types, trading history, revenue sources and funding purposes. Do not assume a universal minimum turnover or trading period. Meeting an initial threshold is not a lending decision.
Ask whether the next stage uses a soft or hard credit search, and whether business, director or guarantor records are checked. Funding Circle's credit-check guidance illustrates why the stage and product matter.
Prepare complete evidence
Ask for a tailored document list and the period required. Depending on the application, this may include:
- Business bank statements and accounts.
- Recent management figures and a cash-flow forecast.
- Card-processing records or an aged debtor report.
- Existing finance balances and repayment schedules.
- Identity and business-ownership evidence.
Use accurate, unaltered records and explain unusual entries. Our business bank-statement guide covers preparation and secure sharing.
Test affordability, including a quiet period
Forecast receipts and payments by date. Include tax, wages, rent, stock, existing debt and the new commitment. Then test lower sales, delayed customer payments and unexpected costs.
For a cash advance, apply the collection percentage to eligible sales, not profit. For variable-rate borrowing, test a higher rate. Do not assume projected growth will arrive before payments begin.
Compare cost and personal exposure
Request usable cash received, all fees, total payable and the payment schedule on a consistent basis. Ask about early settlement, missed payments, renewals and refinancing. See business loan costs.
Check security separately. An unsecured loan can still require a guarantee; the British Business Bank explains personal guarantees. Read our personal-guarantee guide and obtain independent legal advice before signing one.
Verify the provider and the agreement
Confirm the provider's identity, the activity being offered and any applicable regulatory permissions. Understand the introducer's role and fees. Be alert to pressure or an unexpected payment demanded to release funds; the FCA explains loan-fee fraud.
Keep the final offer and signed terms. Do not commit to supplier deadlines based only on an indicative quote.
Common questions
Does rejection itself damage my credit score?
Do not confuse the lending decision with the searches or credit activity surrounding an application. Ask what search will be recorded. Repeated applications can involve repeated hard searches; not every initial enquiry does.
Is a cash advance an automatic fallback after a loan decline?
No. It has its own eligibility rules, costs and obligations. If affordability caused the decline, changing product may not solve it.
What if my documents are ready but I am unsure about borrowing?
Pause before signing and seek appropriate independent advice. You can also read our full finance FAQ, which separates AARUBI's MCA service from other commercial loan introductions.
