At See Business Loans, we’re in an excellent position to offer some “top tips” for those seeking business finance.

In our experience, with appropriate preparation and planning, success is much more likely than in situations where a business has just cast around looking for finance from a number of randomly selected sources.

So, here are our tips for success in finding business loans:

  • get expert advice in advance. Not all types of finance will be either suitable or advantageous in your position. Unless you’re an expert in business funding, you may struggle to identify those options that are suitable and those that aren’t. The result might be wasted time, money and in some cases, perhaps damage to your credit history if you’re subject to loan application refusals;
  • prepare your request professionally. Few if any providers of business loans welcome applications that have been poorly thought-through and prepared. Once your reputation has been damaged by the submission of a poorly structured funding request, it may be difficult to repair it. We can assist in this preparation of course;
  • understand your own business case. This is related to the point above but however well prepared and presented your proposal is, if it doesn’t make sense in basic business terms then success is unlikely;
  • brush up on (or learn) the basics of accounting and financial business metrics. It might be imperative that you can demonstrate that you understand your own business position in quantitative rather than just qualitative terms. So, if you’re uncomfortable talking about balance sheets, P&Ls, depreciation, asset valuations, cash flow management and so on, then some homework is advisable;
  • be open. Cite all pertinent material facts. Don’t attempt to obscure or hide the reality of your business and/or personal financial position. Don’t downplay business problems you have or have experienced.

Funds providers will often see any such attempt immediately and not only might your request be rejected but your professional reputation could suffer too;

  • look at your existing assets. It’s far from unusual to see companies attempting to raise business loans when they actually already have substantial cash tied up in their existing assets. That equity could be accessed (called technically asset re-financing) as a very cost-effective way of injecting capital into other areas of your business.

Business plan

Finally, make sure you have a comprehensive, credible and well-understood (by you) business plan. Fund providers want to see a number of things including your plans for the future showing how your business will grow. That’s because it’ll indicate how safe their money is in your business.

So, make sure you have a credible quantitative plan going forward and that you can explain it with conviction and in-depth knowledge. Try to avoid plans that consist largely of wishful-thinking, optimistic hopes and unlikely scenarios. These are typically poorly received by lenders/investors.

Link your funding request to your plan. Funds providers like to see that the injection of their capital with have “x effect” on your plans for growth and profit. It’s not uncommon though to see funding requests and business plans that do not appear to relate to each other. Remember, lenders want to see what you’ll be doing with their money.

It’s true that even the best-prepared funding requests can’t compensate for flawed business thinking or for a proposition that indicates a low probability of a successful outcome for the business concerned.

Even so, many funding requests do create problems for themselves even where the underlying case is highly meritorious. This should, of course, be avoided.

This is where we can help. Why not contact us without delay for further advice and assistance in terms of preparing a proposal that will stand a high chance of succeeding in finding business loans?

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