Lending application checklist
When you apply for a loan, your bank will ask you for a variety of details. Most banks usually provide a detailed guide to help you through your application, but this checklist provides a good starting point for your preparations.
First, outline what you need
1. How much you would like to borrow?
2. Why do you need the finance? The bank needs to make sure it’s for a suitable business purpose.
3. How long would you like the finance for? This helps your bank make sure you can afford the loan as well as ensure you get the right kind for your business needs.
Next, show your ability to repay the loan
1. Cash-flow forecasts
3. Business plan
4. Management accounts
5. Historic accounts
Are you a start-up? The first three will usually be enough.
Finally, add any additional information that might help your application
1. Management profile: Describe your skills and experience so the bank can assess your capabilities.
2. How much capital have you invested? This will demonstrate your commitment to the business.
3. Can you provide security? This will make your application safer from the bank’s point of view. It can also give you access to more competitive rates.
4. Do you have any other business interests? This allows the bank to understand any other commitments you have in case they have an impact on your loan.