Three tips to ensure business lending application success
Despite the daily doom and gloom of economic press releases, Business Owners are focusing on
growth and investment to drive their businesses forward. This has led to an increase in volume of
applications for lending. Businesses can improve the chance of their application being successful by
providing the following information to their commercial finance broker: current financial data, all
relevant information and their background story.
Current Financial Data:
The last few years have seen continual disruption for most companies and the annual audited
accounts cannot keep up with the changes. They only provide a snapshot of historical data and don’t
reflect recent trends and challenges. You will need to provide management accounting information
that is current. This will give your broker and lender greater insight into how you are coping, where
investment can help you build growth and whether you have the ability to pay back the loan.
All Relevant Information:
One of the reasons why applications are slowed down is due to lack of provision of required,
relevant information. Businesses often believe that by providing too much information they will
overwhelm the broker and lender and slow the process. However, the reverse is true. Brokers are
adept at sifting through documents to find what they need to expedite your application! Having
details immediately on hand means they can get on with the job and won’t need to waste time going
backwards and forwards with questions.
Give your background story
Provide a short summary at the beginning of your application which explains why you are applying
for the loan, what has been happening at your company and how you are going to use the loan to
grow your business. These details give the broker an insight into you, your business and your
ambitions. Understanding why you want to borrow and what you have planned can help ensure the
success of your application.
Brokers and lenders are ready to help you build a strong growing business, by providing them with
current financial data, all relevant information and your background story, you will ensure that they
can help you succeed.