I’ve been fortunate enough to be my own boss for a number of years. Let me be the first to say that there isn’t a business owner in Australia, nay the world, who hasn’t fought in the battle of obtaining finance. Below are my 6 top tips to prepare yourself when applying for business finance:
- Play the field
It’s an oldie but a goodie: don’t put all your eggs in one basket. There are so many more options in the lending space than just the Big Four.
- Nail your business plan
Your written business plan is the single most important document you’ll have to sell your idea. It will be poured over by the decision makers, and it’s got to be just as good at selling your idea as if it were you yourself in the room doing the talking.
- Know your numbers
If you don’t know your current income, net profit, expenditure and future projections, why would a lender take a punt on you and your idea? Banks and credit providers expect confident answers, so make sure you’ve sought assistance if this is not your strong point.
- Keep repayments up to date
Make sure your current loans are up to date with the repayments. Banks will check other banks references. If you are not paying your loan elsewhere on time, the funder is going to question as to whether you will be able to pay theirs.
- Disclose defaults
Banks always find out about defaults and if this is mentioned upfront, this comes across more favourably at the application stage. If it is paid and there is a reasonable explanation the bank will usually accept it.
- Bounce back
It’s part and parcel in business that not every application for finance will be a successful one. Make sure you seek and receive feedback about why your loan was knocked back, and be ready for next time.
How can we help?
We specialise in financing for small and medium sized businesses. We also find the best home loans and investment property loans for people. We also develop finance packages for equipment suppliers to offer their own customers.
Contact myself or my team on 02 9299 1200 or email me at email@example.com and we can:
- Meet with you to find out what you really need
- Clearly explain the pros and cons of different options
- Negotiate on your behalf with banks and other lenders
- Show you if and how tax and GST savings are possible
- Ensure there are no hidden surprises
- Look after all the paperwork – and legwork
- Provide advice and answers whenever you need it
I look forward to hearing from you soon.
Business Finance Director
Commercial Associates Accountants and Advisors