Application help

Demonstrate a clear grasp of your financials, emphasising your ability to meet repayments. Show that you have thoroughly researched your market and your competitors. Identify clear routes to market, highlighting when you expect money to start coming in.

Make it clear that you understand your numbers, outlining what you need the money for and how you will pay it back. Research what goes into a sound balance sheet and cash-flow projection, work with an accountant or a business mentor to develop your knowledge and skills in these areas.

A bank or finance provider will take into consideration the way your business has managed its finances in the past when it assesses your application. If you believe your credit rating is incorrect or inaccurate, you can challenge it. You should check your business’ and your personal credit ratings before making an application.

There are a number of credit reference agencies in the UK, you should check the information that they hold about you is accurate. They will be able to help you find out more about your credit rating and the key elements that might affect it.

Don’t underestimate how much money you need. Coming back to the bank for further funding will be more expensive and it may also affect the bank’s confidence in your ability to manage your company finances. Avoid overestimating revenues and undervaluing the costs you will incur and remember to include the living costs you will need to take out of the business

Keep in contact with your bank and give it any additional information it asks for to help it make a decision. Ask for feedback on your lending applications and how you could improve them and if you are declined ask why so you can understand the lender’s reasons. Remember, a ‘no’ will not mean a different lender cannot help you or that you will be turned down in the future. It’s important to keep checking what other banks and finance providers offer to small businesses because your bank may be willing to improve its offer if you have other quotes.