With advances in technology and quicker turnaround times, it's easier than ever to apply for a commercial business loan. Just because it's easier to apply doesn't mean it's easier to get approved for the funding. To ensure you're making the process as seamless as possible for yourself, your loans broker and the bank there are a few important steps you should take prior to applying for your loan that can save you the effort later on.
Finesse your business plan
Every great business starts with an in-depth business plan. Even if a business plan isn't required during your application process, mapping out a formal document may help you to identify important steps that have been previously overlooked.
If you need assistance scoping out an in detail business plan, even as an already established business, Helix Planning can help. As experts in business coaching and advisory, the Helix team can work with you at any stage of your business journey to make sure there are no unforeseen bumps in the road ahead.
Be realistic about your borrowing power
It's all well and good to dream about having a lump sum in your pocket for business spending but it needs to be a realistic amount, otherwise, you risk digging yourself into a deep hole of debt.
Calculate how much you think you need to borrow and be realistic about how much your business can actually afford when it comes to repayments. You should also consider anything that might occur in the future that could impact your ability to your commercial business loan back on time.
Have your financial paperwork ready
As well as your business plan you should have paperwork on hand that covers projected future profits, overheads and general costs. If you're already an established business that's been running for a while your bank or lender will want to see past financial documents including:
- Profit and loss statements. You can find a template here.
- A current list of assets
- A current list of liabilities
- Income tax returns and any other business tax documents
While it has become easier to apply for a business loan, the real challenge is gaining approval. No matter how prepared you are, the business loan approval process can still be quite a maze to navigate. If you want an expert on your side that can talk the finance language while explaining the process along the way, get in contact with us. SFE loans know the effort you've put into your business, so let's get it right the first time!
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