In our last blog post we wrote about the opportunity of being pre-approved for a £50K business loan. There are currently some excellent funding solutions available. The most important factor for a successful process though is the application.
A lender will want to be presented with a strong business case as well as good financial accounts. By following our simple guidelines, a company can put themselves in the very best position possible:
Year end – prepare early, don’t leave financial reporting until the last minute. Stay on top of your business accountancy needs and ensure that everything recorded is accurate and accountable. Ideally make use of a cloud accounting solution as reports are available at the click of a button.
Business bank account – make sure any transaction for the business goes in and out of a dedicated business bank account. The longer you hold this account the better and always try to show a positive banking history. Finally ensure the account is correctly in the name of the business.
Credit score – all businesses will have a credit score which is made readily available for lenders. Keeping a constant review of this and making sure it shows good results is important. If there are areas for improvement, then make sure this is completed before any loan applications are made.
Good planning – as well as preparing early for year end it is equally beneficial to plan early for any funding applications. For example, if there is likely to be some cashflow issues then account for them early. If time permits don’t be in a rush, explore all the available options and study all the benefits. Of course, if you are in a hurry there are solutions available.
Changes – try to avoid making any major business changes as red flags will appear with any sudden change in operating structure or management team. A lender ideally wants to see stability and that the business has solid foundations and a reliable operating model.
Experts – speak to the experts and seek the help of a broker. Finding the right business finance can feel overwhelming, a broker does this every day so can speed up the process and make it hassle free. They know what to look for, how to handle the application and how easy it can be.
To find out more or to speak with one of our funding experts please contact us. Call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.
Leave a Reply