If you’re keen to access business finance, then it’s essential that you put yourself in the best possible position for a successful application.
1. Get your books in order
Bookkeeping and accounting are essential functions of any business. If these are not your strong area, then you either need to develop your skills quickly or to use the services of an accountant. If you can’t successfully manage your finances then your enterprise will never be profitable. There are plenty of online courses and resources available for small businesses, as well as funded training options. Try your local Chamber of Commerce for guidance.
2. Check your credit history
Particularly if you are a sole trader, lenders will factor in your personal history when deciding whether to grant you business finance. Get into good financial habits that will translate over into your business affairs. Pay your bills on time, setting up standing orders and automated payments where possible to avoid missing deadlines. Paying your bills in full also helps. Build up an emergency reserve and avoid over-extending your credit. Aim for prudential financial management and be cautious, organised and close to the detail of your business financial affairs.
3. Have a plan
Your lender may want to see details of your funding plan, which will detail the plans for your business loan and show how you plan to use the investment. Have a clear plan that explains the intended purpose of your loan. This won’t just satisfy lenders but it will also ensure that you have thought through your spending plan in detail.
4. Know your repayment plan
Before you take out a business loan, be clear about its affordability and your ability to budget to repay. A fixed repayment loan will help you to budget and to plan ahead. Make sure you stay on top of your payments to demonstrate that you are a reliable customer to your lender. This will be vital if you want to borrow again in the future.
5. Get advice
Business loans can be a complex area and it’s useful to get advice from the experts. Contact our friendly and helpful finance team today for a chat about your personal situation and to progress your rapid, affordable business loan with an immediate lending decision.