An Underwriters View for Getting Finance Approved

How to get a cash injection for small business.

People can often find applying for finance to be confusing, intimidating, or just find the forms involved and additional information needed to be frankly a bit too much like hard work! Unfortunately, we can’t just lend on the basis of you having a winning smile, and will always need information from you. Hopefully though, the points I’m outlining below will make life a bit easier for you.

  • Be open and honest on your application.  If you have had any financial issues in the past, whether as a business or personally, any finance company will find out about it, and so it is always best to inform them of these issues at the start. This way, the issue can be investigated and dealt with. If you leave it to a financier to find out for themselves, trust will breakdown, and they will become nervous. There is nothing worse than a nervous lender!
  • If you can’t provide any information requested, then tell us. If you can’t provide it, we won’t chase it, and can work around not having it. What you should never do is assume we have forgotten (we haven’t!). What we may assume  is that you are trying to hide something, and this could affect our decision to lend.
  • Be prepared and able to explain your company/group structure clearly and succinctly. If you do have a more complicated structure, then you may need to explain this to your financier, and the easier you can make this, the better. Make sure all directors and shareholders are registered at companies house, and ensure cash flow through the group is clear. A simple diagram is always nice.
  • Be confident of your debtors.  How well do you know them? Have you asked them if they are happy to pay to pay a third party finance company, or have you assumed they are? Do they have a sound credit rating? What paperwork do they require? All these must be considered before decisions can be made and finance agreed.
  • There is no such thing as a stupid question. No matter how daft or simple it sounds in your head, make sure you ask us. It is often these unasked questions that lead to a small, easily fixed problem, turning into a big headache.
  • If the application is confusing, tell us. If you are not sure what we mean, or what details we need, then please ask. We are happy to help with any applications, and the feedback we get from you can help us to make our processes easier and more efficient. So please tell us!

The golden rule to remember is that there is nothing worse than a nervous lender. Whether it is your bank or an independent, once they get nervous, they worry about cash they’ve lent. If this is the case, then they’ll REALLY worry about lending more! An open, honest and frank dialogue between both parties from the very start should alleviate any of this, and allow a healthy and prosperous relationship.

If you would like to chat about how we can help you and your business, or have any questions relating to this post, then please feel free to pick up the phone and chat things through with us at any time. Getting a cash injection for small business does not have to be as hard as you think.

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