What does a lender look for in my bank statements?

What they want to see

An underwriter reads your statements for regular, credible incomings that match your stated turnover; balances that do not sit permanently at zero or against the overdraft limit; and outgoings that look like a business paying its way. Consistency across months matters more than any single good week.

The warning signs

Certain patterns count against you: returned direct debits or bounced payments (a distress signal covered in the missed-direct-debit answer), persistent hard-against-the-limit overdraft use, gambling transactions, or unexplained large movements. These do not automatically decline you, but they lower confidence, and are part of verification.

Presenting a strong account

In the months before applying, run income and costs cleanly through the business account, avoid bounced payments, and keep some headroom rather than living at the overdraft ceiling. Connecting Open Banking lets the lender see this clearly. Where a movement needs context, explain it up front.