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

At the same time, improving your Cash Flow management could also help improve your Credit Rating making it much more likely the company will be able to successful, which brings us nicely to point two:

Lenders always seek to minimise risk, so you must convince them lending to YOUR business is a safe bet, to do this you must provide evidence your business is financially sound, make sure there are no skeletons in your closet.

Let’s explore the topic of eliminating skeletons in more detail now…

Evidence Your Business is Financially Sound

If your business is managed well, you will be on top of your numbers and be able to provide ample evidence of this in the form of management reports.

A well-run business will plan, budget, forecast sales, and costs and regularly report and review financial performance using Management Accounts.

If you use accounting software, producing management information for lenders is easy, provided your bookkeeping is accurate and up to date, this will be a pre-requisite for demonstrating your financial controls are in place and are reliable.

One key issue that is of paramount importance when it comes to applying for finance in any form, is your credit rating.

Every business must submit an annual return. Statutory Accounts and other financial information about your business ends up being monitored by the Credit Rating Agencies, so what is happening to your financial performance will directly impact your Credit Rating.

We all know they exist, but for most, how Credit Ratings work is a bit of a black art. Your Credit Ratings are important for several reasons …

Funding and Business Growth Playbook ^N0 V1.1 (GYN FO).docx | Confidential

Page 8 of 47

Registered Office: 20-22 Wenlock Road, London, England, N1 7GU

Made with FlippingBook Learn more on our blog