When preparing information to put forward to a lender, it is important to present a well structured business plan and accurate historical information. Our team at BLG are happy to support clients with this process to ensure that obtaining finance is as stress-free as the process allows.
Common mistakes to avoid when applying for a loan include:
For more information on the above, see the Australian Bankers Association report on the small business sector in Australia. The report provides detailed insight on the current lending climate for small business.
It can be helpful to talk through what is usually required on a loan application, which includes:
For every loan application, the lender will consider the risk to itself and the risk to the borrower. In order to mitigate this risk, the bank will require an amortisation strategy on how the debt is intended to be paid back.
In order to prove the loan can be repaid, our clients regularly need to report financial information to banks and demonstrate that they have satisfied all the compliance requirements. It is common practice for our office to assist in the preparation of management accounts for lending purposes and to review and assist with the completion of covenant and compliance declarations.
If you are intending on sourcing finance in the next year, it is important to present your business in its best form. If you have time up your sleeve, make sure you are proactive by ensuring you:
When approaching the bank, think about the repayments and what you can afford, the pricing of the loan (being the interest rates and fees) and the conditions you must meet whilst repaying the loan.
Finance can be a daunting and stressful task especially in the current banking climate. Our team is here to help, reach out and see what we can achieve together. Get in touch online or by calling (02) 4229 2211.