1: Know what you want
Decide whether you want a short, medium or long-term loan. Perhaps you want an interest only facility or a more specific type of loan?
The key is to do your research before speaking to a broker, always be aware of what you can afford, the length of time you want to pay it back over and the precise reason for taking out a business loan.
This information will quickly help your broker identify the appropriate lender with the best deal for you.
2: Provide up to date documents
It’s vital that you provide accurate and up to date supporting information. Applying for a loan can be complicated and frustrating and even the smallest error can delay the whole process or even lead to a decline.
Check that the supporting information provided is clear, precise and separated into specific PDFs with relevant file names. This enables the underwriter to access and evaluate the application more easily.
Top tip: Create a checklist of the documents you need to provide to your broker.
3: Know your loan capacity and limitations
Review your credit history in advance and give yourself the chance to correct any errors in your report as this may have serious implications for a loan approval. Be realistic about the level of funding required and the potential costs depending on the size and strength of the firm.
Speak to your broker about the amount you require and terms available for the specific products on offer. They should have access to a range of lenders whose costs may vary depending on the profile of the firm.
4: Manage your expectations
Applying for a loan can be frustrating but don’t be tempted to rush the process. A broker will follow a specific procedure with a lender and although they will try to do this as quickly as possible, it can sometimes take longer than expected if the lender has specific questions.
As mentioned earlier, preparation is key so ask plenty of questions in the early stages of your application so that you have an idea of what to expect.
Top tip: Create a FAQ sheet to bring to your broker so that you don’t forget to ask an important question.
5: Timescale – How quickly do you need the funds?
Leave plenty of time for the above points, a rushed application is never a good idea and any mistake can seriously affect your chances of an acceptance.
In addition to this where funding is not urgent often a better deal can be negotiated, be sure to contact your broker in advance so they have more time to negotiate the best deal for you and your business.
Call us today on 01242 395507 and find out about the flexible funding solutions we provide.
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