Can we help you find and access finance for your business?
23rd September 2013
Lending under Government scheme increased in Q2
The Funding for Lending Scheme (FLS), launched in July 2012, allows banks and building societies to borrow cheaply from the Government so that they can pass on cheaper finance to businesses and individuals.
Latest figures from the Bank of England show net lending to businesses and households under this flagship Government scheme increased by £1.6 billion in the second quarter of 2013.
This figure is a slight improvement on previous quarters but there were differences between lending to individuals and businesses. Lending to individuals - mostly via mortgages - increased slightly while FLS borrowing by large businesses 'remained weak' and lending to SMEs fell.
We can help you access finance to grow your business by helping with projections to support your application as well as explaining traditional and alternative finance options, and the various Governmental schemes that are available. Contact us to find out how.
Here are some top tips for giving your business loan application the best chance of approval
1. Develop a robust business plan
This should include projections for growth and should be periodically updated as growth is achieved or market and financial factors change.
2. Build financial understanding
You must be able to demonstrate that you understand your key numbers - e.g. turnover, profits and existing debts - as well as being able to show how the debt will be repaid.
3. Check your track record
Banks will look at the credit history of you and your business in order to see how you've managed previous borrowing. Check your history and address any concerns.
4. Be honest
Be clear about how much money you need and why you need it. Underestimating what you need or overestimating your projections may affect the lender's confidence in your ability to repay.
5. Keep talking
If you get a 'no', ask the lender for feedback. They should be able to give you advice about the changes needed to make a 'yes' more likely in the future.