Why lenders need bank statements, accounts and HMRC records

Lenders request documentary evidence to assess four key things: real cashflow and turnover, project viability (can the job be completed and repaid), tax and regulatory compliance, and borrower integrity (KYC and anti‑fraud checks). In construction these checks are particularly important because projects are typically staged, payments may be retained, and input costs (materials, labour, plant hire) are substantial.

• Bank statements: prove income timing, client receipts and affordability.
• Management and statutory accounts: show profitability, retained profits and balance sheet strength.
• HMRC records (VAT, CIS, PAYE, CT/SA): confirm tax liabilities, payroll commitments and CIS contractor/subcontractor flows.
• Project papers: confirm contract terms, stage payments and security for development finance.

Bank statements lenders normally ask for

Which accounts (business & personal)

Primary: the company’s business current account(s). If your business uses a separate project account or client funds account, provide those too. Lenders will also often request director personal bank statements where directors provide guarantees, the company is newly incorporated, or trading history is short.

How many months and file formats

Typical requirements:

• 3 months — common for smaller working capital and straightforward loans.
• 6 months — standard for most business loans and asset finance.
• 6–12 months (or more) — for development finance, bridging, or where there are irregular receipts and higher perceived risk.

Preferred formats: downloadable PDFs directly from the bank, or official bank‑stamped statements. Some lenders accept CSV/Excel exports but many prefer PDFs that show bank branding and transaction details.

What underwriters look for on statements

• Consistent business income and the main client receipts.
• Large one‑off deposits — lenders will want evidence of source (contract, sale proceeds, shareholder loan).
• Regular supplier outgoings and payroll — to assess ongoing commitments.
• Overdraft usage, returned payments or chargebacks — red flags unless explained.
• Transfers to directors or personal spending running through business accounts — expect requests for clarification.

Common pitfalls in construction applications

• Unexplained cash payments or “cash‑in‑hand” receipts.
• Personal costs paid from business accounts without clear records.
• Irregular client payments with long gaps between invoices and receipts.
• High overdraft dependence or repeated bounced payments.

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Accounts & financial statements required for construction finance

Management accounts (live performance)

Lenders prefer recent management accounts (monthly or quarterly) showing a profit & loss, balance sheet and preferably job‑costing or project breakdowns. For construction, up‑to‑date management accounts (prepared within the last 30 days) with details of committed costs and expected receipts are invaluable.

Statutory accounts and Companies House filings

Provide the last 1–3 years of filed statutory accounts (audited or unaudited). Lenders use these to validate trends in turnover, margins, retained profits and director remuneration. If the company is newly incorporated, expect underwriters to place more emphasis on personal statements and contracts.

VAT records & returns

Recent VAT returns (usually the last 3–6 periods) and VAT registrations are requested. Lenders check whether VAT is a liability or an asset (refunds pending) and whether you use cash accounting or standard accounting, as VAT timing can affect cashflow.

Construction-specific documentation: CIS, retentions & contract records

Construction lenders look for evidence of CIS submissions and how subcontractor costs are managed. Also provide evidence of retention amounts outstanding, variation orders, and stage payment schedules — these affect expected receipts and cashflow timing.

Forecasts & job cost reports

For development finance or long contracts supply cashflow forecasts, cost‑to‑complete calculations and site valuation updates. Quantity surveyor (QS) or architect certificates supporting progress claims strengthen applications.

HMRC details lenders commonly check

Tax liabilities and HMRC debts

Lenders will ask whether there are outstanding HMRC liabilities, formal debt repayment plans, or defaults. Unresolved HMRC debt can materially affect the offer and may need to be settled or shown on a manageable repayment plan.

PAYE & payroll (RTI)

If you run payroll, provide RTI evidence and recent payroll summaries. Lenders need to know PAYE liabilities are up to date and understand staff cost commitments — especially relevant for contractors with large workforces.

VAT & CIS submissions

Provide copies of recent VAT returns and proof of CIS submissions (employer and contractor statements). Lenders will check whether you’re registered for CIS and whether there are any irregularities in filings.

Company tax returns & directors’ Self Assessment

Submit CT600s for the company and recent Self Assessment tax returns (SA) for directors where requested. These help lenders verify declared income and director affordability when guarantees are considered.

Additional documents lenders may request for construction projects

• Signed contracts, supply agreements and written change orders.
• Stage payment certificates, interim valuations and QS reports.
• Project programme, cost plan and cashflow forecast.
• Planning consents, building regulations approvals and architectural drawings.
• Insurance certificates (Contractors’ All Risks, public liability) and evidence of compliance.
• Security information: asset lists, machinery valuations, property valuations (RICS) where property is security).
• Proof of ID and address for directors, Companies House documents, PSC register and recent bank account confirmation letters.

How document requirements vary by loan type

Documentation intensity depends on the product:

• Working capital / unsecured loans: lighter documentation — typically shorter bank statement history and recent management accounts. Suitable for smaller sums.
• Asset & equipment finance: focus on asset invoices, ownership, and evidence business can service repayments (bank statements + management accounts).
• Bridging / acquisition finance: require valuations, proof of exit strategy, multiple months of statements and clear security documentation.
• Development & project finance: most rigorous — QS valuations, stage payments, longer bank statement histories, full tax records and detailed forecasts.

Practical checklist — prepare these to speed up approval

Gather the following to avoid delays:

• 6–12 months business bank statements (PDFs)
• 3–6 months director personal bank statements (if guarantees provided)
• Recent management accounts (with job-level reporting)
• Last 1–3 years statutory accounts and Companies House filing proof
• Recent VAT returns and CIS submissions
• CT600 company tax returns and director SA where relevant
• Signed contracts, stage payment schedules and QS/valuation reports
• Insurance certificates, planning consents and ID documents

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Tips to improve your chances & avoid delays

• Keep business and personal transactions separate — tidy accounts get quicker offers.
• Reconcile your accounts monthly and include job codes on invoices.
• Prepare a short cover note explaining any large or unusual transactions.
• If you have HMRC arrears, secure a formal repayment plan and provide written proof.
• Use your accountant to compile a concise info pack (management accounts, forecasts, contract summary).
• For development projects, a QS report and contingency plan will materially help underwriters.

How UK Business Loans helps

UK Business Loans is an introducer — we do not lend or provide regulated financial advice. Our free enquiry is not an application; it’s information we use to match you with lenders and brokers experienced in construction finance. Complete a short enquiry and we’ll connect you with parties who want to review your documents and provide quotes.

Working with us typically gets you matched faster and reduces wasted time explaining your project to unsuitable lenders. Learn more about our construction finance support on our sector page for construction business loans.

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Frequently asked questions

How many months of bank statements do lenders usually request?

Most lenders ask for 3–12 months. For straightforward working capital you might only need 3 months; for development or bridging finance expect at least 6 months and often 12 months or more.

Will lenders request personal bank statements?

Yes — particularly for small limited companies, newly incorporated businesses or where directors provide personal guarantees. Expect 3–6 months as a common request.

Do I need VAT returns and CIS submissions?

Yes — recent VAT returns (typically last 3–6) and CIS submissions help lenders verify compliance and timing of contractor/subcontractor payments.

What if my business has late payments or an overdraft?

Explain and evidence the reasons. Lenders may still lend if the issues are historic and you can show improved controls or a repayment plan. Transparency is crucial.

Can newly incorporated companies get construction finance?

Yes, but underwriting will rely more on director history, personal statements, contracts and client creditworthiness. Expect a higher documentation burden and possibly personal guarantees.

How long does the document review take?

Once documents are submitted, brokers or lenders typically review in 24–72 hours; more complex development cases can take longer depending on valuations and site visits.

Legal & compliance note

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