Applying For Funding: Top Tips

Applying For FundingWhether starting up or facing financial difficulty; a commercial loan can help keep your business firmly above water. Although the last economic downturn caused banks and building societies to limit lending with small businesses and start-ups labelled as high risk, things are greatly turning around.

Today the option to request financial support is there but the application process is far from easy. Infact, applying for a business loan could be likened to taking a brisk jog down the Great Wall of China; long, hard and seemingly never ending!

Applying for a Business LoanMany businesses often get the process wrong by missing out vital information, neglecting to supply the right details and generally failing to understand that lenders will go through everything with a fine toothed comb. As a result, start-ups and small business owners- and even those with years of experience- find their applications very swiftly rejected.

A difficult process it may be but impossible it is not. Applying for business funding, whether with a large national bank or small building society can be done, only if you know how...

Know exactly what you needOne of the prime reasons business loans are often rejected is as a result of over borrowing. In hindsight it may have seemed like a great idea to borrow an additional few thousand, to ensure you have everything covered, but lenders will rarely consider this a wise move.

Be sure you know the exact figure you want to borrow and be ready to explain why you are borrowing the sum and where every penny will go. Lenders will want accuracy so ensure you can give it to them.

DetailsNot every business can be perfect and there will often be many business owners starting up a new venture for the fourth or fifth time. Discrepancies are not unheard of in the business world and although hiding things may seem like the best idea; honesty is always the best policy.

From personal finances to issues your business may be facing, not all lenders will immediately tar you, you would be surprised just how many are more than willing to help. Be honest and make all details, financial and otherwise, as clear as possible.

Don’t take it lightlyApplying for a business loan is considered difficult for a reason; it is a tremendously heavy handed process that requires a lot of time and effort. Research what your chosen bank or building society requires or accepts from your loan application and take your time filling in all the required details.

Provide as much information as possible and above all, show that you understand what is expected and what you as the applicant are required to do. Consider the support of an accountant when filling out your application to ensure that you have the best chance possible.

Applying for a business loan is often unavoidable- have you done everything you can to ensure that your application is not rejected?

Find out more Find out more about Green Fairy and what we do at our website:http://www.greenfairyuk.co.uk/