Enough to see that the borrowing is genuinely for the business and that it fits a short-term working-capital need. You do not need to write an essay — a clear one-line purpose is usually plenty — but a vague "general purposes" is less helpful than a specific reason.
Why we ask at all
We are an exempt business lender: the finance has to be for the business, not personal spending, and the purpose helps us match the right product and check the amount is sensible for the need. The full reasoning is in why we need to know what the finance is for, and what qualifies is in what counts as a business purpose.
- "Paying a supplier invoice due before our customer settles"
- "Buying stock ahead of a busy season"
- "Covering a VAT bill while waiting on receivables"
- "A one-off equipment repair to keep the workshop running"
What we do not need
We do not need quotes, contracts or line-by-line budgets for a short-term loan. If a specific document would genuinely help the assessment, we ask for it during the application — see what documents we might ask you to provide. Being straightforward about the purpose is one of the things that strengthens an application.
To size the borrowing to the need, the planners at Credicorp Tools help. Then apply.
We lend only to UK limited companies and LLPs, the loan is to the company with no director personal guarantee, and this is business finance outside the consumer-credit regime — as an exempt lender under Article 60B of the Regulated Activities Order we sit outside FCA consumer-credit regulation, so the Financial Ombudsman Service and FSCS do not apply.
See also: Why we need to know what the finance is for?, What counts as a business purpose?, What strengthens an application?.