Access To Finance: Ignore The Headlines And Make Your Story Stand Out
By Joe Carstairs, Funding Options
While much has already been said and written about access to finance, small business owners can be forgiven for finding the topic entirely confusing.
At times it can seem like there’s a new government scheme to boost lending, a new alternative finance provider, a new statistic that proves the banks aren’t lending and another that proves they are, created every week.
Certain truths about small to medium sized enterprise (SME) finance can’t be denied though. Overall bank lending has dropped since the boom years before 2008. However few people would suggest it’s sensible to return to these...
At the same time, new finance providers, such as new banks and alternative lenders, are starting to offer businesses other options; even though the majority of SME lending still comes from the five main banks.
Businesses that require finance should therefore take heart from the fact that there are a growing number of finance providers willing to lend them money.
What they shouldn’t assume however is that, just because these new providers claim to offer something different, they’ll be any less rigorous in their assessment of finance applications.
Businesses do have options available in terms of finance products and providers. The key point to remember though is that, whether you’re approaching your own bank, one of its rivals, an alternative lender or all of the above, they all want to know the same thing; that you can pay the money back.
Therefore, businesses applying for finance should keep one thing in mind; ensure your finance application is as comprehensive as possible and you’ll have little problem convincing someone to lend you the money you need.
Five ways to ensure your finance application is a success:
1. Understand your options: Want an unsecured loan? Then be prepared for disappointment.... continued on page two >