How overdue accounts affect lender assessments
Lenders check Companies House filings as part of their standard due diligence. Overdue accounts will be visible and will prompt a query. The concern is not simply compliance: overdue accounts may mean the lender has no recent financial information on which to base a credit decision.
Private limited companies have nine months from their accounting reference date to file accounts. A company that is three months overdue is less concerning than one that is 18 months overdue. A first-time minor delay is different from a pattern of persistent late filing.
What lenders will accept instead
Where filed accounts are overdue or simply too old to be useful (for example, filed accounts that are 18 months out of date), lenders will typically ask for recent management accounts. A set of management accounts covering the current trading period, prepared by an accountant or bookkeeper and consistent with recent bank statements, usually satisfies lenders' need for current financial information.
Filing your overdue accounts before applying for finance is always the preferred approach. It resolves the compliance issue and gives lenders the most accurate view of your financial position. Accounts can often be filed within days with the support of an accountant.
- Management accounts (typically last 3 to 6 months) are accepted by most lenders in lieu of recently filed accounts
- The more recently overdue the accounts, the less of an issue
- Persistent overdue filings suggest poor financial governance and are a stronger negative signal
- Companies House will strike off companies that fail to file for extended periods
- Filing overdue accounts before applying is strongly recommended
Frequently Asked Questions
Can my company be struck off for not filing accounts?
Yes. Companies House has powers to strike off a company that fails to file accounts or confirmation statements. A struck-off company cannot legally trade and will be unable to access any finance. If your company has been struck off, it must be restored before finance can be considered.
Do micro-entity accounts provide enough information for lenders?
Micro-entity accounts show very limited financial information and are often insufficient for lenders conducting credit assessments. Many lenders will ask for full accounts or management accounts alongside micro-entity filings to get a complete picture of turnover, gross profit, and net position.