No matter what we might think of the banks, there are times when a little external finance can go a long way.

There is a wide array of commercial finance types available that can help businesses buy the assets they need to grow. The ability to capitalise on opportunities as and when they come along is the key to successful businesses. Sometimes there simply isn’t enough money in the bank to make those important investment decisions. When you decide the time is right to access commercial finance, there are certain details the banks will expect to see when you make your application.

Although individual lenders may have their own specific requirements, there are also some standard requirements we can help you with. Our commercial finance application checklist provides a good starting point to check you have the all the information you need.

Please note: Not all the information contained in the list will necessarily be required in every case. For example, if you already have a credit facility with a bank, it may not request to see a business plan.

Application CheckList

Start-up or established business

Outline what you need Whether you’re just starting a business or are established business applying for commercial finance, you will need to

  • Decide how much you’d like to borrow – The first piece of information to include on your lending application is the amount you’d like to borrow. This allows the bank to quantify your request.
  • Explain what you intend to do with the finance – The bank will want to check the intended purpose is suitable and determine which type of finance is best suited to your needs.
  • Determine how long you want the finance for – The term of the loan will help the bank to assess its affordability and find the right type of finance for you.

Demonstrate your financial viability

Once you’ve stated how much money you need, the reason for the loan, and the repayment term, it is your job to show the business is financially viable. This will help to prove to the bank that you can afford to repay the loan. You will need:

  • Cashflow forecasts
  • Details of any assets
  • A business plan
  • Any historic accounts (if it’s an established business)
Information that might help your application There’s also some information you should include in your application to improve your chances of being approved for a loan. This includes:
  • A profile of the owner or management team – Detailing the experience and capabilities of you and your management team can boost the bank’s confidence in your business’s prospects.
  • Your investment in the business – The bank may like to know how much the business owner has invested in the business.
  • The availability of security – Is there any security available to support your lending application?
  • Other business interests – This is a good opportunity to disclose any other business interests you might have. The bank may choose to look at these other interests to assess your capabilities and experience.

Perhaps you’re not sure which is the most suitable commercial finance type for your business? Or maybe you’d like to know a little more about invoice finance? At Business Expert, our resources are chock full of the impartial business advice and support you need to make informed decision about your business.