Applying for finance might seem like a daunting task, especially when it’s vital for the growth of your business. In fact, almost 60% of the UK are worried about the impact of a rejected finance application. Fortunately, with the support of Pinpoint Finance, you can gain vital help and support in applying for business finance.
This article will help you learn what you need to ask, say, and provide in support of your business finance application. Here are five easy steps to get you ready.
1. Know Your Numbers
In order to seem credible to your lenders, you need to know how much money you really need. That’s not just what you want, or a rough figure you’ve estimated. Going in with exact numbers is crucial to getting the financial support your business requires. Break down your costs, expenses and any assets you can use to offset risk (if you have any available). The steps outlined in point 2 below will help you gain an insight into how much money you need for your business
2. Put Those Numbers Into A Business Plan
Take your numbers and put them into a clear business plan. You’re going to need to forecast your profit and loss, set up a balance sheet, and outline a clear cash flow pipeline if possible. This shows your lenders the chances of the financial lending resulting in success. Drafting a business plan is also fundamental to the growth of your own business. It helps both you and the lender understand how your business will evolve and what its potential is.
3. Get Your Personal Finances Together
Prepare the last six months’ worth of business and personal bank statements and get ready to provide this to your lender. Your lender might ask for less than six months, but having these overprepared means you’re ready to go. You should also have a copy of your credit history to show that you have no financial obstacles, like high debt, missed payment or CCJs. Use a site like CheckMyFile to look at your personal finances if you’re not sure what financial skeletons you might have in the closet.
4. Show Proof Of Financial Security
Any assets that can help to guarantee a loan will support your business finance application. An example of this might be ownership of a property, a vehicle, or business equipment. We appreciate this may not always be possible. However, for some loans you may be required to provide a personal guarantee to secure funding and minimise risk for the lender.
5. Call Pinpoint Finance
As Business Finance experts, we have decades of industry experience in securing business loans for our customers. We can talk you through your options and offer a detailed insight into what lenders are looking for in an application. Contact us today for advice and support on your Business Finance application. We’ll help you on the path to business growth today.
