Increase your chance of securing funding

There are some simple steps that a business can take in order to put themselves in the very best position of securing funding. It is not just about demonstrating how successful you have been, a lender will want to be presented with a strong business case to ensure they are 100% confident that everyone involved in the transaction will benefit.

As business finance specialists we know first-hand how important the application process is. We have compiled our top tips on how a business can increase their chances of being successful with their lending application:

• Prepare early for year-end – don’t leave your end of year reporting until the very last minute. Throughout your financial year stay on top of your finances and make sure all the important reporting is accurate and accountable.
• Use only a business bank – make sure you have a business bank in the correct name and ensure that it is the only option used for incoming and outgoing money transactions. Try to make sure you have a positive relationship with your business bank and that you can display a positive banking history.
• Regularly check your business score – one of the first items a lender will look at is a business’s credit score. It is therefore important that you regularly keep track of what your business score is. If it needs improving, then put the right processes in place to ensure this can be quickly updated.
• Plan well in advance – in the same manner as preparing early for year-end you should also plan early for any funding applications. Try to ensure that you can identify any issues which could have a negative impact on cashflow before they happen. Also, when applying don’t be in a rush, make sure that you have allowed plenty of time so that you can evaluate all of the options and find the right one for you.
• Avoid major changes – any variations to the business structure such as management or director changes could be a red flag to a lender. They want to see stability and that the business management team are invested and committed to the company.
• Use a broker – don’t feel like you are alone, utilise the services of a specialist that can help you broker the right deal for your specific circumstances. A broker can remove all the hassle of an application, taking care of the entire process and keeping you up to date every step of the way.

If you have any questions or would like to discuss a new funding application, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.