The importance of structuring your finance application

When a business is looking for some additional funding, it is important to take a structured approach to the application. You could be looking to refinance existing debts, boost cashflow, increase staff numbers or complete a business acquisition, all of which will require careful planning and accurate execution to secure the necessary finance.

The following are our 5 top tips on how to best structure any future application:

1. Have a clearly defined and well-structured business plan that shows you have completed your due diligence and fully understand your business, your market and your competition. Be clear in your routes to success and demonstrate accurate forecasting for 12 months, 2 years and 5 years.
2. Make sure you fully understand the businesses financial situation. Be clear in your financial projections and clearly demonstrate what the funding will be used for.
3. Ensure you have a positive track record with previous business finance, making payment exactly when is needed. Monitor credit ratings and take appropriate steps to improve them if necessary.
4. Be fully transparent and don’t underestimate the amount of funding needed. It is always better to take more funds than initially needed. It is easier to overpay or settle the debt early rather than not having enough and having to complete a second application for additional funding.
5. Keep in regular contact with all stakeholders involved in the funding. Don’t always settle for the first option, with so many solutions available, take the time from the outset to ensure that you get the best finance deal which will suit your specific business need.

Finally, it is important that you consult with the experts. If you need IT support then you speak to an IT professional, likewise if you need accountancy support you speak to an accountant. If you need business finance, then make sure that you speak to a finance specialist.

The NGI team are specialists and can help ensure that a business secures the funding they need now and in the future. If you have any questions or would like to discuss the best approaches in securing business finance please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.