3 Things You Must Do Before Applying For Business Finance

3 THINGS YOU MUST DO BEFORE APPLYING FOR BUSINESS FINANCE Funding and Business Growth Playbook T: 0330 350 3356 @: hello@GrowingYourNumbers.com www: growingyournumbers.com o Turnover, profitability, and key trading ratios o Current assets – Cash, stock, investments, and other assets o Liabilities – Salaries, tax, loans, mortgages • Audit information – Any adverse Auditors comments on your Audit Report

• Your Payment history – Outstanding debt and how long it takes you to pay suppliers

• Company age – Older companies have more history for analysis

• Company size – Larger companies are treated differently to smaller companies

• County Court Judgements (CCJ) – Number, frequency, value. All will negatively impact your rating

• Filing accounts on time – Late filing will lower your credit rating

• Directors – The directors personal credit rating and circumstances

Right now, regrettably the greatest risk to credit ratings is potentially already totally outside of your control …

During the Covid disruption many businesses have taken out loans, either out of necessity or simply because it made sense considering the government support and the uniquely advantageous terms being offered.

In many cases businesses have also taken advantage of opportunities for delayed payment terms on outstanding monies owned to Her Majesty’s Revenue and Customs.

It goes without saying, many businesses had seen turnover and profit significantly impacted by the various Covid lockdowns and related disruption.

What is probably less obvious is that when the company accounts are filed, these changes are picked up by the Credit Rating agencies resulting in potentially significant reductions in Credit Ratings and some extremely unpleasant and unexpected ramifications.

To find out more about Credit Ratings and how they can have some worrying ramifications, click the link below to reserve your place on the upcoming Funding and Business Growth Seminar.

Let’s look at just one scary ramification that could be catastrophic for some businesses, because if you know in advance that this might happen, then you have a chance to do something about it before it is too late, utility costs…

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