A business plan describes where your business is now, your aims for the future and how you expect to achieve them. In addition to obtaining finance, it can also help you to focus on your strengths, weaknesses, targets and performance.
A low credit score or poor credit history is one of the most common reasons why a business owner is turned down for bank finance, according to research into declines and appeals. So what is a credit score and how can you strengthen yours?
When you apply for a loan, your bank will ask you for a variety of details and will often provide a detailed guide to help you through your application. But there are a number of things you can do to give yourself a head-start and this checklist provides a good foundation for your preparations.
Four out of five unsuccessful loan applications are turned down because the business either can’t show how it will repay the loan or it already has a poor track record in making repayments.
Banks play a key role in supporting smaller businesses to do what they do best – driving economic growth and creating jobs. They are committed to responsible lending, putting the interests of their customers first and supporting the UK’s economy. Lenders approve most SME lending applications. However, they have an obligation to lend responsibly and there are times when an application does not meet their lending criteria.