bank wants to know what I use the business credit for what do I write

Purpose of the financing, not day-to-day spending

The bank is asking here about the intended use of the credit: what is the credit facility intended for, in general terms. Think of working capital, inventory financing, bridging of debtor payment terms or seasonal peaks. The bank does not expect a detailed accounting breakdown per drawdown, but rather a description that fits the company profile. "Working capital for regular business operations" is a normal answer for a trading company; for a highly seasonal business, a reference to inventory or purchasing peaks is more appropriate.

This is not a question with a right or wrong answer, but the bank assesses it against what it already knows about the company from customer due diligence. An answer that deviates from known business activities — for example, a holding company without operational activity that states "inventory financing" — will still raise follow-up questions. That is why the answer is usually most convincing when it aligns with the activity description that is also listed in the business register. If the question appears in a broader package together with questions about the average payment term to suppliers or about the source of the company's assets, then that is a signal that the bank is mapping the full range of cash flows, not just this single credit line.

Why the bank asks this: customer due diligence

This question follows from customer due diligence that banks must conduct under the Anti-Money Laundering Directive. Part of that due diligence is an understanding of expected transactions and the purpose of the business relationship, so that the bank can assess later transactions against what was stated in advance. The intended use of credit falls under this. If a question about the UBOs of the company comes up in the same round of questions, it is part of the same due diligence and the approach is comparable — see ubo-data-fill-in-the-questionnaire.