What is a Quick Quote and what is a Decision in Principle?

A Quick Quote is a fast, indicative estimate of likely terms — such as the amount you might be eligible for, indicative rates, fees or repayment ranges — based on limited information you provide. A Decision in Principle (DIP) or “soft approval” is a preliminary assessment from a lender or broker saying you would probably qualify, subject to full checks and documentation.

Both are tools used early in the lending journey so you can compare options and budget. They are commonly delivered by email, phone or a secure portal and are based on a short set of business facts (turnover, sector, time trading, required amount, security available).

If you want a quick, no‑pressure estimate from lenders and brokers we work with, you can Get Started — Free Eligibility Check.

Are you legally bound after a Quick Quote or DIP?

In most cases, no. A Quick Quote or a Decision in Principle is indicative — an early-stage communication that helps you compare options. It is not a legally binding loan agreement.

That said, there are important nuances and exceptions:

• Signing creates obligations: If you sign a formal loan contract, security deed, or a document that expressly creates a binding obligation, you are legally committed.
• Acceptance of a quoted offer can form a contract: If a quote is presented as a formal offer with clear terms, an expiry date and you accept it in writing (and it meets the legal requirements of an offer and acceptance), that may become binding.
• Mandates and payment authorities: Giving a broker or lender a signed mandate, direct debit authority or permission to draw funds can create enforceable obligations.
• Fees shown as payable on acceptance: If you agree to pay an arrangement or broker fee and that agreement is signed, you may incur a charge even if you later withdraw.

Practical example: an email saying “Indicative rate 7% for a secured loan of £50,000 (valid 14 days)” is normally indicative. But if you sign a “Loan Offer” document that repeats those terms and includes a signature line, that is the point the legal relationship usually begins.

Compliance note (please read): UK Business Loans is an introducer and not a lender. We do not provide regulated financial advice. Quotes and Decisions in Principle are indicative and not legally binding. Full terms are set out in any formal offer from a lender. Using our service is free and does not affect your credit score. Read our Privacy Policy and Terms for more detail.

What a Quick Quote or DIP does — and does not — commit you to

What it does

• Indicates likely eligibility and helps you budget and compare options.
• Lets lenders/brokers prioritise suitable products for your business.
• Can speed up the full application if you choose to proceed.
• Often uses soft credit checks (but confirm this — see below).

What it does not do

• Does not guarantee funds will be provided.
• Does not usually form a contract or legally bind you.
• Does not lock you into a lender — you can still shop around.
• Does not typically include full underwriting, due diligence or security checks.

If you’re ready to compare options without obligation, Get Quote Now — Free Eligibility Check.

When can a Quick Quote or DIP become binding?

The lending journey has clear stages. A Quick Quote or DIP sits at the start. Here’s how the process typically flows and where commitment usually begins:

1. Enquiry / Quick Quote: Informal — indicative only.
2. Decision in Principle: Conditional pre‑approval — usually still not binding.
3. Full application & documentation: Lender orders full checks, valuations, and requests signed declarations. At this point some commitments may be needed (e.g., authorising a hard credit search).
4. Formal offer / loan agreement: When you sign the loan agreement and any security documents (mortgage, debenture), you are legally bound to the terms.

Actions that commonly create legal obligations include signing the formal offer, registering security over assets, or providing a signed mandate for payments. Verbal promises rarely form enforceable contracts, but signed written agreements do.

Practical tips — how to protect your business before and after a Quick Quote / DIP

Use this simple checklist to keep control of the process and avoid unwanted obligations:

• Ask directly: “Is this quote or DIP binding?” — get a plain‑English answer in writing.
• Check expiry dates: Know when the quote expires and what conditions apply.
• Confirm credit search type: Ask whether the check is a soft or hard search and whether it will affect credit scores.
• Read documents carefully: Don’t sign anything you don’t understand — ask for time to seek independent legal advice if needed.
• Record communications: Keep emails, screenshots and call notes in case of disputes.
• Ask about fees: Confirm whether any broker or lender fees apply and whether they’re payable even if you don’t proceed.
• Compare quotes: Get multiple Quick Quotes to compare rates, terms and charges before committing.

Want expert matching to lenders and brokers so you can compare without obligation? Get Started — Free Eligibility Check and we’ll match you with partners who can provide firm offers if you choose to progress.

What UK Business Loans does for you

UK Business Loans helps connect UK companies (loan values from around £10,000 and up) with lenders and brokers that can provide business finance solutions. We’re an introducer: we don’t lend directly and we don’t give regulated financial advice. Our role is to save you time by matching your enquiry with providers likely to suit your sector and needs.

Submit a short enquiry and we’ll arrange for selected brokers or lenders to provide a Quick Quote or DIP so you can compare options. The enquiry is only an information step — it is not a loan application and does not, by itself, create a binding contract.

Free Eligibility Check — Get Quote Now

Learn more about the types of business loans we can help you explore on our business loans page.

Compliance & data protection — what to watch for

Any quote or DIP you receive should be clear and not misleading. Before you provide personal or business data, check the introducer’s privacy statement and confirm how your data will be shared. UK Business Loans shares your enquiry only with vetted partners and uses secure systems to store information.

Key items to check:

• Clear indication whether credit checks are soft or hard.
• Full disclosure of any fees, including broker fees.
• Written terms for any offer or mandate before you sign.
• Privacy policy and contact details for the introducer and any third parties.

Frequently asked questions

Ready to compare no‑obligation quotes? Get Quote Now

How to proceed — next steps

1. Complete a short enquiry — it takes around 2 minutes.
2. We match your business with lenders and brokers likely to help.
3. Receive Quick Quotes or DIPs to compare — none are binding at this stage.
4. Choose the option you want to progress and provide any requested documentation — only then will formal checks begin.

Start your enquiry now and see your options without commitment: Start Your Enquiry — Free Eligibility Check.

Closing reassurance & contact

Getting Quick Quotes and DIPs is a safe way to explore funding opportunities without committing. Use them to compare costs and suitability — only sign formal documents once you understand and accept the full terms.

If you have questions or need help, contact our team. Using our service is free and only becomes a formal application if you choose to progress with a lender or broker.

Legal / Compliance copy (verbatim): “UK Business Loans is an introducer and not a lender. We do not provide regulated financial advice. Quotes and Decisions in Principle are indicative and not legally binding. Full terms are set out in any formal offer from a lender. Using our service is free and does not affect your credit score. Read our Privacy Policy and Terms for more detail.”

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