How to improve your chances of funding

November 23, 2015 by Andy Crow

How to improve your chances of funding

The latest figures from the BBA tell the story that Banks want to help small to medium sized businesses. For SMEs applying for bank finance, approval rates are around 80% for smaller businesses and 90% for medium-sized.

The reality is that cash holdings continue to grow, thus reducing SME needs for bank finance. Deposit levels are growing by 9% annually and significantly exceed SME borrowing, by around £59 billion.

This tells the story that businesses are perhaps worried about their ability to raise cash in the short term to cover unexpected costs or they are not going through traditional methods to raise funds. There are a great many hurdles going to your bank directly to get money easily and whilst Banks want to see businesses grow and flourish they have a responsibility to make sure that the money they lend out doesn’t disappear. Consequently there is usually a thorough approval process that you must go through.

It is here that many small business owners fail to present themselves in the right way to get their loans approved as they struggle.

• Proving your business has Interest Coverage.
• Showing your Borrowing Capacity.
• Clearly displaying the Cash Flow in your business.
• Having a robust Business Plan.

As mentioned above, the banks want to support the local business community, but when they are presented with poor or missing historical financial information and unclear base assumptions toward future projections, it becomes impossible for them to approve loans.

We have seen many companies struggle with this process which is why Chorus has recently entered into a partnership with Think Business Finance. By covering the whole market, from Government approved funds to High Street banks and the new Challenger banks they can ensure you will get the best rates and terms. They offer both secured and unsecured loans and their experienced team will assist you with the application process.

Best of all you will normally have the whole process arranged within 7 working days!

So if you are considering taking a loan or just need some advice contact Chorus Business Advisers for free consultation on 0845 8671263 or email info@chorusadvisers.co.uk