Short answer — am I obliged?

No — simply receiving a refinance quote generally does not create a binding obligation. Most lenders and brokers send indicative or conditional quotes to help you compare rates and costs. You typically become committed only when one or more of the following happen: you accept a formal offer in writing, sign a loan agreement or security document, pay a non‑refundable fee, or enter into an exclusive brokerage agreement.

That said, there are important exceptions and practical risks to understand — so read the rest of this guide before you accept anything.

Types of refinance quotes — what they mean

Indicative quote (non‑binding)

Purpose: provides a ballpark rate and estimated fees based on limited information (loan size, turnover, basic credit background).

• Usually labelled “indicative”, “estimate” or “for guidance only”.
• Typically based on soft checks or no credit checks at all.
• Does not create a legal obligation — it’s for comparison purposes.

Conditional / subject‑to‑approval quote

Gives more detail than an indicative quote but includes conditions: full underwriting, valuation, supply of accounts or director guarantees.

• If conditions are fulfilled, the lender may issue a formal offer.
• Still not binding until a formal offer is accepted or documents are signed.

Formal offer / binding agreement

This is the document that typically creates legal obligations once accepted. It includes the exact interest rate, repayment schedule, fees and Conditions Precedent (what must happen before funds are released).

• Acceptance is usually by signature or clear electronic agreement.
• Often accompanied by legal documents to be signed by the business and, sometimes, guarantors.

What actually creates a legal or financial obligation?

Key triggers that commonly create an obligation:

• Signing a formal offer or loan agreement — a signature or valid electronic consent usually binds the parties.
• Paying a non‑refundable fee (arrangement fee or valuation fee) where no cooling‑off clause applies.
• Entering an exclusive broker agreement that commits you to work only with that broker for a set period.
• Giving written instruction to draw down funds or register security such as a charge over property.

Also be aware that in some cases a written or emailed acceptance — even if not a formal signature — might be considered binding depending on wording and surrounding facts. If in doubt, ask for the lender’s confirmation in writing of whether your reply will be treated as acceptance.

When and how a quote can affect your credit score

One of the practical reasons people worry about getting quotes is the impact on credit profiles. Here’s what to expect:

• Soft credit checks: used for indicative pricing; do not appear on the public credit file and do not affect scores.
• Hard credit checks: usually carried out when you make a formal application; these are logged on your credit file and can temporarily reduce your score.

Always ask the broker or lender whether the quote involved a soft or hard search. If you plan to get multiple detailed offers, aim first for lenders that use soft searches for initial affordability checks so your credit file isn’t impacted prematurely.

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Practical steps to protect your business before accepting any quote

Follow these steps to keep control of the process and avoid accidental obligations:

1. Confirm quote status in writing. Ask: “Is this indicative, conditional or a formal offer?” Get the answer in writing.
2. Ask about credit searches. Confirm whether any checks were soft or hard and when a hard check would be performed.
3. Obtain a full fees breakdown. Include arrangement, valuation, legal and ongoing admin fees and any early‑repayment charges.
4. Check security and guarantees. Understand whether a personal guarantee, director guarantee or charge over property is required.
5. Watch for exclusivity. Don’t sign any agreement that prevents you from seeking other offers unless you’re happy with the consequences.
6. Retain all communications. Save emails and PDFs of quotes and any correspondence for your records.
7. Get professional advice for complex deals. For larger refinance packages or property charges, independent legal or accounting advice is recommended.

Here’s what to do next: when you’re ready to compare options quickly, our network can match you to lenders and brokers who specialise in refinance loans of £10,000 and above. Start your free enquiry.

Questions you should always ask a broker or lender

Before proceeding, make sure you get clear answers to these:

• Is this quote indicative, conditional or a formal offer?
• Will you perform a soft or hard credit check — and when?
• What fees are payable and which are non‑refundable?
• What security or guarantees are required?
• Are there early‑repayment costs or breakage charges?
• What is the total cost over the term, including fees and interest?
• Are there any exclusivity or broker‑commission arrangements I should be aware of?

How UK Business Loans helps

UK Business Loans does not lend money. We introduce businesses to trusted lenders and brokers, helping you obtain both indicative and formal refinance offers faster. Our service is free to use and designed to be no‑obligation — the enquiry form simply provides details so we can match you to the most relevant partners for your business and loan size (from around £10,000 upwards).

When you submit a short enquiry we will:

• confirm whether initial checks are soft or hard;
• match you with lenders or brokers who specialise in refinance solutions for your sector;
• help you receive clear indicative and formal offers to compare; and
• remind you which actions will create a binding obligation.

Get Started — Free Eligibility Check

For a deeper guide to options for restructuring existing borrowing see our partner page on /refinance-loans which explains common refinance strategies and specialist lenders.

Quick checklist before you sign

• Confirm whether the quote is indicative, conditional or a formal offer.
• Confirm the type and timing of any credit checks.
• List all fees and calculate total cost over the loan term.
• Check security and any personal guarantees required.
• Confirm timescales and Conditions Precedent for drawdown.
• Avoid signing exclusive broker agreements unless you understand the terms.
• Seek independent legal or accounting advice for sizeable or complex transactions.

Bottom line: if you only have indicative or conditional quotes, you can usually walk away without penalty. If you’re facing a formal offer or a request to sign documents or pay fees, pause and verify the exact implications.

Frequently asked questions

Am I bound if I accept a quote by email?

Possibly. Some lenders treat an email confirmation as acceptance; others require a signed formal offer. Ask the lender whether an emailed “I accept” will be legally binding.

Will a broker charge me if I don’t proceed?

Most introducers and initial broker services are free to use, but some brokers charge arrangement or advisory fees — always confirm fee terms and ask whether any fees are refundable if you don’t proceed.

What is a cooling‑off period?

Cooling‑off rights vary by product and provider. For many commercial loans there is no statutory cooling‑off period, so any refund policy will be contractual. Ask lenders and brokers about cancellation rights before paying fees or signing.