Accessing business finance is a key part of any successful business. When you’re in competition with businesses in your field, you want to make sure that you have an edge over your competitors.
An uncertain economic environment has meant securing business finance has become difficult. Business owners need to research the types of finance options available, as well as putting together an application that will help secure the funding needed to supercharge their business’ growth plans.
We have put together a guide, with some tips on how to secure business finance for business owners.
Demonstrating your business has a strong cash flow
A major part of securing business finance is to show to lenders that your business is in good health. Having a strong cash flow is a crucial part of convincing investors and lenders that your business can repay the loan over a certain period of time.
It’s worth creating a three-year cash flow forecast, detailing the performance of your business over that period of time. By creating this forecast, you can convince the lender that your business is capable of repaying the loan amount back.
Understanding the types of business finance that can be secured
Whether you are a startup or an established business, understanding the types of business finance available to you can help with securing business finance. Invoice finance, venture capitalists, angel investors and secured loans are just a few options available to business owners.
Finding the right business finance option is crucial for the short-term and long-term success of your business. Doing your research on the types of loans and finance options available to you can help you make an informed decision on the right kind of finance you can secure as a business owner for your enterprise.
Having a good credit score
When attempting to secure business finance, it’s worth running a personal credit score, particularly if you are applying for a business loan. If your credit score is high, it’ll improve your chances of being approved for the type of business finance you’ve applied for. If your credit score is low, it’s worth spending a few months improving it before making an application.
By demonstrating to lenders that you can pay your bills on time, the chances of getting your business finance application approved will increase. It’s also worth building your business credit score to increase your chances of being successful with securing business finance for your business.
Know how much finance you need for your business
When making a business finance application, it’s important that you know how much finance you need for your business’ expansion plans. With your application to a lender, you need to make sure that you cover in-depth the type of finance you are applying for and what it will be used for.
It’s also worth outlining in your application as a business owner how much finance you need to fund your business’ expansion plans. That’s not the only thing you need to include in your application, it’s important to include how long you’ll need the funding for and how you intend to pay the finance back to the lender.
Create a solid business plan
The bedrock of any business is creating a business plan. A well-researched and in-depth business plan can show to potential investors that you not only know the market your business operates in, but you have the knowledge and systems in place to deliver it.
In the business plan, it’s worth including a 12-month cash flow projection. If you can provide a mixture of best, worst-case and likely scenarios, as well as your resume, it’ll increase your chances of securing the financing to help expand and grow your business.
Conclusion
Knowing how to secure business finance can help supercharge any expansion plans you have for your business.
White Oak UK’s business development loans can be used to help grow your business. Whether it’s used to improve your cash flow or help recruit new staff, as well as take on new challenges that your business is facing in the next few years.
If you are looking to find the right finance for your business, contact White Oak UK’s finance expert and we can see if your business is eligible for a business development loan.
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