Whether you’re starting up in business or looking to expand, there will be times when you’re looking for a cash injection.
With so many options available it can be difficult to decide which is best for your business. As well as banks and other lenders, the government also offers advice and funding in some regions.
If you decide to go down the more traditional route of a bank loan, you will be required to provide a certain amount of information. Let’s take a look at what you’ll need.
When you take out a loan, the lender will always look for some form of security pledge. But these don’t always have to be tangible assets. They may be a personal guarantee or a debenture to ensure they are paid if you go bankrupt. Different types and terms of loans work better for different types of companies, so it’s worth looking for a lender who will assess your business’s merits on an individual basis. If you’re looking for Commercial Loans Northern Ireland companies such as https://www.assetfinanceni.com/Commercial-Loans can help.
Comprehensive Business Plan
Your lender will also want to see what you have planned for your business and that you understand both the opportunities and threats to your business. There are plenty of templates online that you can use which should ensure that you cover all the necessary elements in your plan. You will need to demonstrate a thorough understanding of your products, how they fit in the market and your competition as a minimum.
Any lender will want to know the fine detail of your organisation’s financial position to be able to determine whether further lending is viable or not. This will include any existing loans or other finance such as credit cards and other debt. They will also want to look at your bank statements to verify any information you have provided.
Customer and Supplier Accounts
Part of your financial information should include details of your accounts receivable and payable – what you owe versus what is owed to the business. They may also wish to check with suppliers about how you have operated your account with them and ask for a credit reference.
Preparing this information in advance can speed up the application process.