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The 4-Point Checklist That Makes Getting Finance That Bit Easier……

In last week’s blog, I talked about the importance of making an effective application for business finance.

As I said last time, you only get “one shot“ with your application to a lender, so it needs to be as clear, concise and complete as possible.

We’ve worked on 1000’s of funding applications on behalf of clients and as a result of our experience and expertise we’ve devised something called the 4-Point “Access to Funding” Checklist.

It’s the exact same system we use every time we work with a client and it means nothing gets missed and that the lenders get all the information they need in order to make a quick and informed decision.

We wanted to explain how it works and also give you the opportunity to download a copy of the 4-Point Checklist – it means you can prepare beforehand next time you are approaching a lender for finance.

You can download the 4-Point Checklist right here:

In the meantime, here’s a quick summary of the 4 key areas you need to be thinking about if you want to give your application the best possible chance of success:

  1. All about you – the lender needs to know all about you:
  • Are you a sole trader or a limited company?
  • What name are you borrowing in – your own name or the limited company? Or perhaps an SPV (Special Purpose Vehicle) specifically set up for the deal
  • What’s your background, your experience and your expertise?
  • You need to provide details of any previous business ventures in which you have been involved
  • You’ll also need to provide something called an ALIE – asset/liability/income/expenditure statement – important for understanding your personal financial position
  1. All about the business/project – the lender needs to know about your business plans or proposals:
  • You’ll need to provide the location and address of the business or property
  • You’ll also need to provide some background to the deal
  • And don’t forget your plans and proposals for the future – what are they?
  • Any other information that you consider relevant to the proposal that you think we or the lender need to know? Make sure you include it
  1. All about the numbers – without them we can’t begin to help:
  • What’s the purchase price of the business or property you are buying
  • If you already own the business or property what’s the value
  • How much cash do you have available to put into the deal – how is that cash being raised – savings, borrowed, gift from family – we need to know
  • How much do you need to borrow?
  • What about the turnover and profitability for the business?
  • If it’s a property development, then what’s the current value, what are the development costs and what is the GDV (Gross Development Value)
  1. All about the paperwork – the additional information you need to provide:
  • Proof of ID – copy of your passport
  • Proof of Residency – copy of a utility bill
  • Last 3 months personal bank statements
  • Fully completed ALIE – see above

This information is required as an absolute minimum and when we’re making an application on behalf of a client we always ask for it when we have our initial meeting. Other information that is likely to be required depending on the type of deal includes:

  • Accounts for the business in question – last 2-3 years normally required
  • Last 3 months business bank statements if you already own the business
  • Any projections or cash flow forecasts that are available
  • And if it’s a property development then a breakdown of the build/development costs along with copies of plans and planning permission if relevant.

Providing this information will streamline your funding application and therefore means you get a quicker decision.

If you’d like more detail simply download the 4-Point Checklist here:

Whether you are arranging the finance yourself or are using a specialist broker like ourselves, lenders all need the same basic information.

Now you know what it is!