How to Strengthen Your Application for a Small Business Loan?

Estimated read time 3 min read

Small business loans are available in all manner of shapes and sizes, tailored to meet the unique requirements of each applicant. There are new business establishment loans, small business bridging loans, peer-to-peer financing options and more – all worth comparing and contrasting, with the help and support of an experienced broker.

But what rings true in all instances is the importance of presenting a strong and credible application. Irrespective of your requirements and objectives, certain aspects of your application will be scrutinised more heavily than others.

With this in mind, here are four ways new and existing small business owners can add weight to their applications for external funding:

  1. Have a Solid Business Plan

Your lender will expect to be presented with a comprehensive yet clear business plan, with a detailed outline of your business concept and evidence of the market research you have conducted to date. You will also need to provide accurate and convincing financial projections, along with details of your long-term goals and how you plan to market your business.

Hire the Right People

Essentially, your job is to convince your lender that you are a safe bet. The more robust and believable the business plan you present, the more viable you will appear as a candidate for finance.

  1. Hire the Right People

Your business plan will also need to include details of those you have hired to date, or the people you intend to hire to support your business. This will be just as crucial in determining your eligibility for finance, as the lender will need to be confident in your team’s capacity to put your business plan into action.

When applying for business funding, it is the viability of the business as a whole that matters – not you as an individual.

  1. Know Your Options and Clarify Your Needs

This is another area in which broker support can prove invaluable. By the time you approach a lender; you should already have a good grasp of the options available and know which are suitable for you. Affordability checks should have been conducted, and you should be confident in your capacity to qualify for your chosen product.

All potential options will be presented and discussed during the initial consultation organised by your broker. This will help ensure that by the time your application is submitted, you know exactly what you need and how the product works.

Know Your Target Market

  1. Know Your Target Market

Last up, your lender will expect to see robust evidence of extensive target market research. This will single-handedly determine the viability or otherwise of your business in their eyes. Again, you need to convince your lender that come what may, their money is in safe hands.

Clear and convincing evidence that you know your target market inside out paves the way for a successful business. Hence, it also paves the way for a competitive business loan from a top-rated lender. Your broker will advise on the strength of your case and any further evidence that needs to be provided before your application is submitted.

Sarah Cantley

Editorial Head at UK Blog for Business & Startup.

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