4-point checklist to help you access funding more easily

In the last 20 years we’ve helped thousands of business owners access funding so they can grow and develop.

During that time, we have structured funding for deals ranging from £100,000 up to £10 million. Thus, we have enabled business owners to access finance for purchasing, refinancing and capital injection.

We have extensive experience of working with senior decision makers at many of the UK’s major lending institutions. This means we know exactly what information they need to help them analyse a funding application.

Often working to tight time scales, we also understand the importance of having the correct information available to help speed up a decision.

When working on a clients funding application, to help us make sure we have all the correct information, we have devised the 4-Point Checklist. It helps to streamline the application process and we use the checklist every time we work with a client.

ACCESS FUNDING AS QUICKLY AS POSSIBLE

We know this checklist makes the funding process so much more efficient and helps us access finance more quickly. Therefore, we have replicated the checklist here to help you when you are making an application.

It will provide you with the inside track on what information you need to provide to a lender to give your funding application the best possible chance of success.

So, what information should you pull together before approaching funders?

1: ALL ABOUT YOU

Speed up the process by having the following personal information to hand…

• Do you trade in your own, in a partnership or is your business a limited company?
• What’s the name of the borrower? Is it in your name or the limited company? Or perhaps an SPV (Special Purpose Vehicle) expressly set up for the deal you are doing.
• Explain your background, experience, and expertise.
• Give details of any previous business ventures.
• Set out your financial position. Provide a personal net worth statement.

2: ALL ABOUT THE BUSINESS

A prospective lender will need to know details about your business and proposal…

• Set out the basics, such as the address and a description of what the business does.
• Explain the history and background of the business.
• Outline your future plans. Don’t write too much. Just a couple of pages of A4 setting out your proposals. This shows viability. Include anything that might be relevant, or you feel the lender needs to know.

3: ALL ABOUT THE NUMBERS

Any lender will want to scrutinise your numbers. Make sure you include the following…

• Purchase price or current value of the business or business premises.
• Turnover and profitability for the business.
• Any projected increase in turnover and profitability, if relevant.
• Your cash input into the deal. How is that cash being raised? For example, is it coming from cash flow within the business? Or perhaps it is savings, or you have received a gift from your family. Make sure you include this information as source of cash is an important consideration.
• Any additional security you are offering.
• Your loan requirements.

4: ALL ABOUT THE PAPERWORK

A lender will also need the following essential information from you…

• Copy of your passport – as proof of your identity.
• A copy of a utility bill within the last three months – as proof of residency.
• Last three months personal bank statements
• Last 3 months business bank statements if you already own a business.
• Latest audited accounts for your existing business or the business you are acquiring.
• Up-to-date management accounts or the last 12-months VAT returns.
• Projections and/or cash flow forecasts, if relevant.

WHY HAVING ALL THIS INFORMATION HELPS YOU ACCESS FUNDING MORE QUICKLY

When we’re applying for funding on behalf of a client, this information is absolutely essential to help get the deal done. Some additional information may be required, but the information mentioned above is the absolute minimum.

So, if you’re thinking about applying for funding for your business, this handy 4-Point Checklist gives you the inside track. It will help you prepare ahead of time, the information you will need to provide to a potential lender.

Alternatively, if you feel you want help with getting funding give us a call on 020 3857 3030 or email keith.park@fundingtrack.com