3 Things to check before you apply for finance

It’s hard enough to get a loan enough these days, so help the computer say “Yes” by checking these three vital aspects of your business and personal finances.

1. Business Plan It needn’t be War and Peace. Even the most simplistic plan will help lending institutions to understand your goals. For start-ups in particular, a clear, coherent business plan with sales and cash flow forecasts is a non-negotiable part of applying for finance. Existing businesses need to dust off theirs too, check that it’s still relevant, and update forecasts and growth strategies as necessary. 2. Business and Personal Credit File It’s not just business finances that lenders are interested in. It’s easy to check your personal credit file, and a good rating lends weight to your application. There are plenty of UK credit reference agencies that offer a free trial period to check that everything is in order. 3. Financial Statements Last but not least, lenders need current and historic financial statements – information including revenue, expenses, debtors, creditors and how you’ve handled cash flow so far. Gather everything together for the last few years, along with projections for the next four quarters, and expect the lender to go through them in fine detail. Financial literacy training is an investment in your future and helps you understand your business finances. We offer confidence-boosting, interactive programmes that help you communicate with lenders and better understand their requirements. All you have to do is click here to sign up. [traininglist slug=”colour-accounting-normal”]  ]]>