Making Your Business Attractive to Lenders

lisa alcock
Marketing Manager | S W I G Finance Ltd
29th January 2020
Member roleChamber member

Whether you’re just starting up or running an established business, investing in your business is crucial to growth and scalability. 

There are many reasons why businesses look to raise finance. For example, you may need working capital, marketing support, recruitment, new equipment or a new premises. 

To give your loan application the best chance of success, it is beneficial to spend some time ensuring that you can demonstrate that your business is investment worthy.

So, what can you do to make your business attractive to lenders? SWIG Finance’s Business Manager, Nicola Mapp, shares her top tips to help you prepare.

Be realistic – and conservative in your assumptions

If you have a trading history and are looking at forward projections then - unless there is a good reason why there is a large increase in sales or margins - be realistic about what the business is likely to see in the coming months. A lender will question your forecasts, and it will be clear if they have been produced to prove affordability rather than to provide a realistic assessment of your business’ ability to meet its obligations based on true trading levels. 

Provide Supporting Information

If you are looking for a new piece of kit or are anticipating an increase in production – show the evidence of costs or the likely value of the contract.  This will show the lender you are aware of the implications for your business. If there is relevant supporting information relating to the purpose of the loan, it is always useful to provide this. 

Consider your own Credit History

If you are expected as a Director to provide a Personal Guarantee to support a loan, your own credit history will be assessed as well as that of the business.  If there any defaults or missed payments this could cause problems, though being upfront about any such issues will help. 

Be honest

Don’t try and hide any weaknesses or risks – be honest and demonstrate you understand the potential impact these could have. This gives the lender comfort that you fully understand your business.

It’s no secret that many businesses struggle to find the finance that they need. Here at SWIG Finance, our funds are specifically designed to meet the needs of those who are unable to secure enough funding through traditional sources, and we assess every case on its own merits.

To find out more, or to begin the Loan Application process, click here.

Finance is subject to status. Terms and conditions apply. SWIG Finance Ltd is authorized and regulated by the Financial Conduct Authority, licence number 730724.

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