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
Character
Lenders must have confidence in you.
Providing a loan facility is a gamble for them, so they want to know if you have a good track record of borrowing? Can you be trusted to repay the loan?
You will need to show evidence of a good trading history and the ability to provide quality services while making a profit.
Considerations: Your financial history, credit report (personally and as a business), background and experience, business premises, current assets and your age versus the length of the loan.
Ability
Your capability to successfully run your business.
You will need to provide the lender with tangible examples of past achievements, they need to ‘buy in’ to your vision for your business.
You need to demonstrate a complete understanding of your market and complete a SWOT analysis to evidence your level of thinking.
Considerations: Your direct sector experience, relevant qualifications, this includes your team, operational structure, business history and succession plan.
Means / Margin
Your ability to service the loan.
Providing a loan facility is a gamble. The more confidence there is in your ability to service the debt, the greater your chances of success.
Considerations: Make your plan logical. A poorly conceived or hard to understand plan will significantly reduce your chances of success.
Purpose
Clearly show why you need the money.
Is the money being used to develop the business? Can you prove why you need it?
This must be clearly explained within your business plan. Whatever the reason for the loan, you need to show that it’s a good reason, and one that will generate a return.
Considerations: The nature of your business and the sector in which you operate. The purpose must be legal, ethical and relevant.
Amount
Exactly how much do you need to borrow.
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