The 5 Things Every Lender Checks Before Saying Yes

08.05.2025 Insights Business
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What we did

Business Sale and Purchase Commercial Mortgages

When applying for finance, understanding what lenders really look for can be the difference between a successful application and a missed opportunity. At Onboard, we help growing businesses navigate the lending process with clarity and confidence. Here’s what you need to know. 

1. Character – Your Business Reputation 

Lenders assess your trustworthiness and track record. This includes credit history, payment behaviour, industry reputation, and how your leadership team manages risk. It even extends to the professionals and advisers you work with—reliable partners reflect a well-run business. A strong track record signals you can be trusted with their money. 

2. Capacity – Can You Repay the Loan? 

This is all about financial performance. Lenders will review your cash flow, profitability, and existing debt. Strong, consistent revenue streams and good forecasting give lenders confidence in your ability to meet repayments. 

3. Capital – Your Skin in the Game 

Capital reflects your personal and business investment. It shows how committed you are. Whether it’s retained earnings or personal investment, having your own stake in the business reassures lenders that you're financially and emotionally invested. 

4. Collateral – What Can Secure the Loan? 

Security such as property or equipment provides a safety net for lenders. The more reliable the collateral, the lower the lender’s risk—which can lead to more favourable terms and interest rates.  

5. Conditions – The Business and Economic Landscape 

The purpose of the loan and the broader economic environment both influence lender decisions. A clear plan for how the loan will be used, combined with a strong understanding of industry trends, adds credibility to your application. 

"Onboard was able to quickly assess our debt and lending situation. They gave us excellent advice and options that made us feel supported and confident throughout the process."

Looking to secure funding? 
Our advisory team at Onboard can guide you through the process—helping you build a stronger application and choose the right lending solution. 

Book a discovery call today. 
Your trusted partner in business success. Lending, Accounting, and Insurance for growing businesses. 

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Matt & Ben
Coffee Suppliers Ltd