When a business is in need of finance there are a plethora of choices. No longer do we have to rely on the traditional approach of contacting our local bank manager. One of the major benefits of business finance is that the application process is no longer a complicated and drawn out occurrence. The following provides our 5 handy tips to help a business owner to secure the finance they need.
- Positive cash flow
The first step for evaluating any finance application is to ensure the business is performing well and has a healthy cash flow. Demonstrating that your business is financially stable and able to repay any debt will be a crucial first step.
- Accurate forecasting
Take some time to set out an accurate three-year forecast detailing plans for the performance of the business and the predicted revenues you would be looking to achieve.
- Understand your options
Be clear from the outset what you need, what the best options are and which companies are best suited to help you. Research the types of finance options that are available but don’t limit yourself to one specific route until you have spoken to the experts.
- Maintain a good credit score
If you have a high credit score then the chances of securing business finance will be relatively high, if for some reason your credit score is low then delay the application and spend some time improving this.
- Reliable business plan
Make sure you have a well-developed, detailed and accurate business plan. A document that when presented to potential investors will show you have good market knowledge and that your business has the right systems and infrastructure in place to achieve good growth potential.
By following these 5 key tips your business will be in a strong position to secure all your business finance needs. Of course, some of these steps can seem daunting and time consuming but taking the effort upfront will ultimately save you time and effort. Also, don’t feel you are alone in this, ask for help as and when you need it.
Here at NGI Finance, we can assist you with all aspects of business planning and help you to secure your financial needs. To find out more please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
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