Lender Criteria Guide

HSBC for Contractors — Criteria & Approach

HSBC takes a more accounts-led approach than the pure day-rate lenders, which can suit high-drawing contractor directors whose declared income tells a strong story — and who may then access its sharper pricing. It’s a mainstream option best matched to the right profile.
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Criteria at a glance

Criteria at a glance
Criteria Requirement Assessment Policy
Income basis Accounts-led (salary + dividends / net profit routes)
Day-one lending No — trading history expected
Minimum history Standard — accounts-based
IR35 (inside) stance Assessed via declared income
Umbrella accepted Case-by-case
Limited company Yes
Gaps between contracts Standard
Adverse credit Clean credit preferred
Underwriting Hybrid
Broker access Direct & intermediary

Is HSBC right for you?

Best suited to

  • High-drawing limited company directors whose accounts show strong income
  • Contractors with two or more years of solid trading figures
  • Those prioritising sharp pricing and willing to be assessed on accounts

Watch-outs

  • Not a day-rate lender — tax-efficient low drawers may be undervalued here
  • Newer contractors without trading history are better served elsewhere

Frequently asked questions

HSBC leans towards accounts-based assessment (salary plus dividends or net profit) rather than pure day-rate annualisation. Tax-efficient contractors who draw low may be assessed more favourably at a day-rate lender — we compare both.

It can be, particularly for higher drawers whose declared income is strong, who may also access competitive pricing. The right route depends on your figures.

Generally it expects trading history, so brand-new contractors are usually better matched to day-one specialists. We'll advise.
Typically a couple of years of figures for the accounts route. The exact requirement is confirmed at application.
It depends on your drawings: high drawers can do well on HSBC's accounts route, while tax-efficient low drawers usually borrow more via day-rate lenders. We run both calculations.

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