Three tips for obtaining a business loan

Money makes the world go around. That’s as true for businesses as it is for individuals, but for businesses that need extra liquidity in the form of a loan, it’s not as easy as it is for individuals.

Image Credit

You might need a business loan for many reasons. To be able to buy new machinery or vehicles to allow you to expand, to move to larger premises, or to replace outdated equipment. While the government is keen to encourage new business with start up loans, https://www.gov.uk/apply-start-up-loan, existing businesses often face tough criteria in order to qualify for a loan. Fortunately, there are some things that you can do to boost your chances of getting finance.

What’s it for?

When looking for a business loan it’s important to make it clear to the lender what the purpose of it is. This means being able to show the lender what plans you have for the money and how it will benefit your business.

This means being able to show a supplier of commercial loans Northern Ireland has several such as https://www.assetfinanceni.com/Commercial-Loans a business plan. This needs to include accounts and projected revenues, get an accountant to help you prepare it if you’re unsure. Your business is going to come under scrutiny from the lender, so make sure that you have the details to hand.

History matters

If you’re a start up business you’ll face a harder time getting a loan than if you are more established. Banks will want to know about your personal credit history, so make sure that you have the information to hand, and that your credit history is in a good state.

Image Credit

You can request a copy of your credit report to find out if everything is looking good and ensure there are no nasty surprises. If your credit history is not good then you will need to take some time to repair it before trying to apply for a business loan.

Repayment plan

The main thing that concerns lenders is whether you have the ability to repay the loan. This should be a part of your business plan and that will involve having predictions about your cash flows and revenues. No one wants to put money into a failing business so you need to demonstrate that you are doing well and, preferably, growing.