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How long does a business loan take to get approved? Days for some finance, months for others

How long does a business loan take to get approved? From hours to a couple of months, depending on the type of finance. Here is what slows it down.

Reading time 5 min read
Category Business guides
Written by The bizbritain team
How long does a business loan take to get approved? It depends mostly on the type of finance. According to the British Business Bank, some lenders can approve a business loan within days, or even hours. Others take much longer. Asset-based lending usually takes a few weeks to a couple of months.
So the better question is how long the finance you actually need will take. The answer can be very different for a van, a stock order or a large secured facility.

Section 01

How long does a business loan take to get approved, by type of finance?

The British Business Bank's Finance Finder gives a rough timescale for each type of finance. Here is what it says for the five most common ones.

  1. Business loans

    Decisions depend on the lender and the type of loan. Some lenders can approve a term loan within days or even hours. Others take substantially longer to decide and release the money.

  2. Asset finance

    Leasing and hire purchase are typically processed quickly. For standard equipment such as a van, the process can often be completed within a few days.

  3. Invoice finance

    Setting up a facility can take some time. Once it is running, money is typically available within 24 hours of issuing a new invoice.

  4. Asset-based lending

    This usually takes from a few weeks to a couple of months. The time depends on how complex the deal is, the checks involved and the lender's assessment of your business and its assets.

  5. Business overdraft

    The British Business Bank describes this as a simple process. It starts with a conversation with your bank about what you need.

These are general timescales, not promises. A larger or secured facility usually takes longer than a small unsecured one.

Section 02

What slows business loan approval down?

Most delays come from the same few places. The lender cannot decide until it has what it needs.
  • Missing figures. Out-of-date accounts or no recent management accounts mean the lender has to ask again.
  • A vague purpose. "Working capital" on its own tells a lender very little. A specific use of the money is easier to assess.
  • Security and valuations. If the loan is secured on property or equipment, a valuation and legal work add time.
  • Slow replies. Each question from the lender pauses the file until you answer it.

Section 03

How to get a faster answer from a lender

Step 1

Get your numbers ready first

Have your latest filed accounts, recent management accounts and three to six months of business bank statements to hand.

A simple cash flow forecast helps too. It shows the lender how the repayments fit.

Step 2

Say exactly what the money is for

Name the purchase, the amount and what it does for the business. A quote for the equipment or a list of the stock is better than a round number.

Step 3

Answer questions on the same day

Lenders often come back with a short list of questions. A quick, complete reply keeps your application moving.

Could you send your last three months of statements today if a lender asked?

Section 04

When should you apply for the money?

Apply before you need the money, not on the day you need it. If a supplier wants paying in a fortnight, start now.
Match the finance to the deadline. Asset finance and invoice finance can be quick once the paperwork is ready. Asset-based lending and larger secured loans need more time, so plan for weeks rather than days.
Business Growth Loans through bizbritain need at least 12 months of trading history. If you are weighing up which type of business growth finance suits your plans, we can look at the deal across a wider range of lenders. For more on what lenders check, read how lenders decide how much your business can borrow.
If your business is new, a Start Up Loan is a separate route with its own process. Most bizbritain applicants are approved within one to two weeks of submitting a finished application.

This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.

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