Finance providers will typically require some/all of the following:
- purpose of the loan: exactly what the loan will be used for and why it is needed
- the amount required to achieve your purpose
- the structure of the business and management profile
- the history of the business
- historic accounts showing past performance of the business and asset position of the company
- management accounts to provide details of the business’s expected financial performance going forward
- cashflow projections to ensure that the business will have sufficient liquid funds to service the debt
- a business plan – new or start-up businesses in particular must have a well-prepared business plan
- credit report – all lenders will check the credit status of a business
- good previous relationship with lender
- personal financial statements on the principal owners of the business
- personal guarantees or collateral as security for the loan.
The better prepared a business is, the smoother the process of applying for finance will be.
Now choose the type of finance best suited to your needs: