How long does it take to get approved for a business loan?

Business loan approval can take as little as a few hours with an online lender, or up to 6 weeks with a high street bank, depending on how you apply, the type of loan and how quickly you can provide documents. Unsecured business loans are usually approved fastest, often within 24 to 48 hours, while secured loans that need a property or asset valuation typically take 2 to 6 weeks to be approved.

This guide breaks down business loan approval time by lender and by finance type, what happens at each stage of the approval process, and what you can do to get a faster decision.

How long does business loan approval take: lenders compared

How quickly your business loan gets approved depends heavily on who you borrow from. High street banks take the longest because they rely on full manual underwriting, while online and alternative lenders usually approve fastest since many use automated decision making, in some cases returning an instant loan decision.

Rather than approaching each type of lender separately, matching your business against our panel of 130+ lenders in one soft search shows which of these routes you are most likely to be approved through, and roughly how quickly, before you commit to a full application.

How long does approval take for different types of business finance?

A business loan is not your only option, and approval time varies by product as well as by lender, since some types of finance need a valuation or legal work that others do not.

What happens during the business loan approval process?

Every application moves through the same broad stages on the way to approval, though how long each one takes depends on the lender and the type of finance involved.

1. You submit basic details about your business and what you need funding for to see how much you could be eligible for. Using your Capitalise account, you can see how much you could be eligible for within minutes, with no affect on your credit score.

2. The lender gives an initial decision based on your turnover, trading history and credit profile. This typically takes anywhere from minutes to a few days.

3. The lender reviews your bank statements, filed accounts and any security or asset valuation required. This is usually the longest stage for secured lending, taking anywhere from a few days to several weeks. For unsecured lending, this can be much quicker.

4. You receive the loan amount, rate, term and any conditions in writing, which is worth reviewing carefully before you accept.

5. Once you accept, funds are transferred to your business account, typically within 24 to 72 hours for unsecured finance, or once legal work completes for secured lending such as a bridging loan.

What can delay your business loan approval?

A few common factors add time to an otherwise straightforward application, and knowing them in advance can help you avoid unnecessary delays.

• Needing a property or asset valuation, which is why secured lending generally takes longer than unsecured products

• Incomplete or out of date bank statements and filed accounts, which lenders need to assess affordability

• A complex business structure, such as multiple trading entities or a recent change in ownership

• Adverse credit history that needs manual underwriting rather than an automated decision

• Applying to several lenders separately, since each hard credit search and set of forms adds time and can affect your credit score

• Larger loan amounts, which usually need more detailed underwriting than smaller, straightforward requests

Secured lending such as asset based lending usually takes longer than an unsecured loan precisely because of this valuation step, though it can unlock larger amounts than an unsecured facility alone.

How can you speed up business loan approval?

There is a lot within your control when it comes to getting a faster decision. Here are some steps you can take to speed up your approval:

• Have 3 to 6 months of business bank statements and your most recent filed accounts ready before you apply

• Compare your options through one lender panel rather than applying to several lenders individually

• Choose an unsecured product if you do not specifically need the larger amounts a secured loan or asset finance can offer

• Know roughly how much you want to borrow and over what term, since a vague request usually means more back and forth. Our business loan calculator gives you a quick estimate of repayments before you apply, so you go into the process with a clear idea of what you are asking for.

Ready to get a fast decision on your business loan?

If speed matters most for your business, quick business loans are built around fast decisions and same day funding for approved amounts. Apply through Capitalise and we will match your business against our panel of 130+ lenders, so you can compare real offers and turnaround times from a single application, with a dedicated funding specialist on hand throughout.