How long is a decision in principle valid?

A UK SMB decision in principle (DIP) is typically valid for 30 to 90 days from issue, depending on the lender and product. Fintech lenders like iwoca, Funding Circle and Capify usually quote 30 to 60 days. Bank lenders like Allica Bank, OakNorth and Shawbrook usually issue 60 to 90 day DIPs because their underwriting is more committee-driven and they prefer borrowers to use the time for legal and security work.

A DIP is not a binding offer. It is a statement that, based on the soft-search and information you have provided, the lender expects to be able to offer the facility quoted, subject to full underwriting, satisfactory documents, KYC clearance, and (for secured products) valuation and legal completion. It can be withdrawn or revised if the lender's view of your file changes during full application.

Three things that commonly invalidate or revise a DIP. First, materially worse information emerging at full application: missed VAT filings, a recent CCJ, an unfiled set of accounts, a revenue dip in the latest management accounts. Second, market shifts: if the Bank of England base rate moves between DIP issue and full application, secured lenders typically reprice. Third, KYC failures: ECCTA identity verification mismatches, sanctions hits, or a director appointment change at Companies House mid-flow.

If you are using the DIP to negotiate with multiple lenders, do not let it run too close to expiry: a fresh DIP may take 24 to 72 hours to reissue. See is a decision in principle binding for the binding-vs-indicative distinction.