Summary (short answer): UK Business Loans does not run credit checks. When you submit an enquiry, selected brokers or lenders we match you with may perform a soft credit check initially to confirm identity and eligibility (this has no effect on your credit score). A hard credit search is generally carried out only later — when you make a formal application or accept a lender’s offer — and should only be done with your clear consent. For a free, no-impact eligibility check, Get Quote Now — Free Eligibility Check.

Who runs credit checks?

UK Business Loans acts as an introducer and matchmaker: we connect engineering and manufacturing companies with lenders and brokers who offer business finance. We do not lend, underwrite or run credit searches ourselves. Any credit checks are performed by the lenders or brokers you are introduced to as part of their own assessment and underwriting processes.

Different partners follow different procedures. Some brokers use automated eligibility tools that include soft checks to speed up matching. Final credit decisions and any formal credit searches are made by the lender underwriting the facility.

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Soft vs Hard checks — what’s the difference?

Soft search (pre‑qualification)

• Purpose: quick eligibility checks, identity confirmation or affordability indicators before a formal application.
• Impact: no effect on your business credit score; soft searches are usually invisible to other lenders.
• When used: early stage of matching and shortlisting suitable lenders or finance products.
• Examples: a broker’s eligibility tool, identity verification via a credit reference agency (CRA) soft footprint.

Hard search (formal application)

• Purpose: full underwriting and credit assessment when you submit a formal application or accept an offer.
• Impact: appears on the credit file and can be visible to other lenders (multiple hard searches in a short period can be considered by underwriters).
• When used: later in the process — when the lender needs to verify creditworthiness before issuing terms.
• Examples: applications for asset finance, commercial loans or commercial mortgages where lenders undertake full checks.

Engineering lenders commonly use a soft-first then hard-later model: soft checks to avoid wasting time, hard checks to complete underwriting for big capital or asset-backed loans.

When do partners usually run a soft search?

Typical timings for a soft search include:

• Immediately after you submit an enquiry — some partners run a soft search to confirm identity and give an early indication of eligibility.
• During initial broker assessment — used to shortlist lenders likely to provide the best terms for your engineering business.
• When requesting indicative rates — lenders may run soft checks to produce more accurate indicative pricing without affecting your record.

Benefits of this approach for engineering/ manufacturing businesses:

• Faster responses and fewer unnecessary full applications.
• Avoids impact on credit file while you compare options.
• Helps match you with lenders who specialise in machinery and CAPEX finance.

Partners should be transparent and tell you when a soft search is used. If you’d like a no-impact assessment now, Free Eligibility Check is available.

When do partners run a hard search?

A hard search is generally triggered at defined points in the lender’s process. Typical triggers include:

• You submit a formal application form to a lender.
• You accept a lender’s term sheet or offer and the lender needs to complete final checks.
• The facility requires full affordability checks or is secured against property or high-value assets (common in commercial mortgages and certain CAPEX deals).

For engineering projects, hard checks typically occur:

• When funding is for high-value plant, machinery or premises.
• When lenders need director-level credit verification for underwriting.
• Before funds are released — to confirm final eligibility.

You should always be asked for explicit consent before any hard search is performed. Ask your broker or lender: “Is this a soft or hard search — and when will you run it?” If you want to avoid hard searches until you positively decide, tell the broker so they can prioritise soft eligibility routes where possible.

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Practical advice for engineering businesses preparing for finance

Preparing the right information and asking the right questions reduces surprises and limits unnecessary hard searches.

Before you enquire

• Gather company accounts, recent bank statements and details of the assets you want to finance (age, value, supplier quotes).
• Know the directors’ approximate credit histories; lenders commonly check director credit for loans from £10,000 upward.
• Decide whether you prefer asset-secured or unsecured finance — this impacts underwriting depth.

During matching

• Ask each broker or lender whether they will use a soft or hard check at each stage.
• Limit hard searches by asking brokers to carry out initial matching using soft eligibility tools or supplied documents.
• Use a single broker where possible — they can present your case to multiple lenders without multiple hard searches on your file.

If you have adverse credit

• Be open about credit problems on the enquiry form — specialist lenders accept imperfect histories, especially for asset-backed deals.
• Specialist brokers experienced in engineering finance can approach the right panel of lenders to minimise rejections and hard footprints.

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Consent, data rights and transparency

Transparency and consent are key. You should expect the following from any broker or lender:

• Clear notice before any credit check, especially hard searches.
• Explanation of whether a check is soft or hard and who will see the result.
• Option to delay a hard search until you sign or accept terms.

Your data rights: you can ask which searches were performed, request a copy of information held about you, and raise corrections if anything is inaccurate. Brokers and lenders must handle your personal and company data in line with data‑protection law.

Suggested microcopy for enquiry consent (example):

“I consent to UK Business Loans sharing my details with selected brokers and lenders. I understand UK Business Loans will not run credit checks; partners may perform soft or hard credit searches and will obtain my consent before any hard search.”

Typical engineering loan scenarios — what to expect

• Machinery / asset finance: Usually a soft eligibility check first; a hard search when you accept terms or the lender completes underwriting.
• Equipment purchase (new or used): Soft pre-checks are common to provide indicative rates; final offer triggers hard checks.
• Refinancing capital equipment: Soft checks to pre-qualify; hard checks for final valuation and security decisions.
• Commercial mortgage for factory or workshop: Lenders often request full document underwriting and a hard search before issuing formal offers.
• Invoice finance / cashflow facilities: Underwriting can include company and director credit checks; expect full checks at application stage.
• Fleet or vehicle finance: A mix of soft-first then hard searches for final acceptance.

If you want examples specifically for engineering businesses and machinery funding, see our specialist guidance on engineering business loans.

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What UK Business Loans does — quick reassurance

How it works:

1. Complete a short enquiry (takes a couple of minutes).
2. We match your case to lenders and brokers experienced in engineering and manufacturing finance (loans from around £10,000 and up).
3. Selected partners contact you to discuss options — they’ll tell you when any soft or hard credit checks will be performed.

Submitting an enquiry to UK Business Loans does not trigger a credit search. To start a no‑obligation, no‑impact matching process, Get Quote Now — Free Eligibility Check.

FAQs

Will UK Business Loans or its partners perform a soft or hard credit check, and at what stage?

UK Business Loans itself does not perform credit checks. Partners may run a soft check during pre‑qualification and will only run a hard check with your explicit consent, typically when you submit a formal application or accept an offer.

Will a soft search show on my credit file?

No. Soft searches do not affect your credit score and are generally invisible to other lenders.

Will a hard search affect my ability to get finance?

Hard searches appear on the credit file and multiple hard searches in a short period can be taken into account by lenders. That’s why limiting hard searches until necessary is recommended.

How can I avoid multiple hard searches?

Work with a single broker to shop your case to several lenders without repeated hard searches, and ask for soft checks at first where possible.

I have less‑than‑perfect credit — can I still be matched?

Yes. Tell us about adverse credit on the form — we will match you with lenders and brokers who have experience with similar cases.

When will a lender tell me they are going to run a hard credit search?

They should inform you before conducting it and ask for your consent. If you are unsure, ask the broker or lender to confirm in writing.

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Next steps — Get a free eligibility check (no impact on credit)

Ready to explore options for machinery, equipment or commercial finance? Complete our short enquiry and we’ll match you to the best lenders/brokers for your engineering business.

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Microcopy next to form checkbox: “I consent to UK Business Loans sharing my details with selected brokers and lenders. I understand UK Business Loans will not run credit checks; partners may perform soft or hard credit searches and will obtain my consent before any hard search.”