A simple guide: How to successfully raise Business Finance

I thought it might be helpful to put down some simple points to make your life a little easier when applying for a business loan, be it through a broker or going direct.

Despite what the online adverts say, business finance is tougher to get and more expensive than I can remember for many years.

By using a good broker your chances of success will double, as you know in your sector a specialist is always way ahead of a non-specialist.

A good way to judge the quality of the broker is to check out their named testimonials on their website and see if they mention some options that you had not previously thought about.

1. Apply Early

Try and apply early for a business loan, some Company Directors have thought about a loan for some period of time before they take action, possibly thinking it will not be necessary.

If you are applying for a Bank loan it is always better to apply when the Company is in a strong position, rather than a last-minute urgent request. 

Most Banks and Finance Companies are not very supportive of Construction related businesses unless they have a specialist division; however, there are plenty of Finance Companies that specialise in this marketplace, it’s just a question of knowing where to go.

I normally have at least 1 case a week, where the loan has been left to the last minute and so much stress and money could have been saved, had they spoken to me earlier.

2. Know what you need 

I know this is obvious, but please give sufficient thought to how much you wish to borrow.

If you are unsure how much you will be able to borrow then ask the broker as they should know the finance options open to you, after all this should be their expert area. You are welcome to call me on 0800 612 5364 or my mobile 07710 466166.

The next 2 points are pretty critical.

3. Warts and all 

If there are any problem areas or past adverse credit, it is a safe assumption that at the underwriting stage, which is normally right at the very end of the process, they will discover them.

Up to this period of time, you might be under the impression that all is well, and you will be mentally spending the money.

I believe in dealing with any potential issues right at the beginning and explaining the background to my “Can Do” person at the finance company; it is much more difficult to do with a clerical assistant or in an online application.

4. Find the right lender 

Although many Finance Companies and Banks' marketing departments will lead you to believe all are welcome to apply for a business loan, well this is true all can apply but their lending criteria are:

Business Sector - Turnover - Business Credit Rating driven.

So to avoid frustration, disappointment and wasting your time and of course, leaving a needless Financial Footprint or credit search on your Company.

Try and do some research and apply to the correct company.

To conclude - the one question you should always ask yourself when putting in a loan application is:

Can the underwriter see, from the information that I have supplied, that my company can afford the loan repayments?

If not show them how you can, this can be the difference between a rejection and acceptance and saving up to 50% on the interest rate.

I hope the above helps in a business loan application. 

I am a very lucky man to love what I do, you are very welcome to call me direct on my mobile 07710 466166.