What kills many potential entrepreneurs isn’t a lack of ideas. It is not the lack of familial support that could keep a business alive. Reviewsbird.co.uk records views from many people who could not sustain their business because of many issues. One of the issues is the inaccessibility to loan companies.
To finance a business is an important thing for a potential entrepreneur. Without the capital that secures the foothold of the business, the business idea is still an idea. Both startups and already established businesses face this funding challenge in many countries of the world, as well as the UK.
However, although the exit of the UK from Brexit will affect businesses, the government has created means to access funding. While this helps startups, it’ll also help low-income entrepreneurs.
To apply for a loan, the usual steps are the completion of an application form, the lender company, bank or individual runs a credit check before he/she/they decide to offer you a loan or not. When your application is complete, you have the luxury to accept or decline the loan.
To apply for a loan, note these tips to have a higher percentage of success.
· What is the relevant information you need to supply?
You need all the comprehensive details essential for the applications. You must tick all boxes and turn every stone. Some of the things you must pay attention to are the amount you need, a feasible business plan, your bank statement for your business, your balance sheet, and details of profits and losses. You also need to include your personal details.
· Have a good credit history:
many banks will like to ascertain that you’re not a serial lender or one who flouts the time to pay debts. This is why you should have a credit card, or least, borrow little amounts of money. This information is needed to ensure that they confirm the authenticity of the claims on your application form. To track and improve your credit score, and ultimately increase chances of getting a loan, you can use online services like ClearScore or Experian.
· Pay keen attention to your application details:
a small mistake can be a costly error. It could be a missing fact or an error. This could get your application declined. Ensure to double-check your application form before you submit.
· Avoid making multiple applications at once:
making multiple applications could make your lender think you’re unsteady in your struggle to get a loan. This could be a put off since they have many other entrepreneurs who require the same assistance you need.
· Are you eligible for grants? Check:
you can check if you’re eligible for grants. This is what you should do first. When you get a loan, you’re sure to pay back. But a grant affords you less worry and financial burden to get anxiety over.
· Is your business affected by the pandemic?
If yes, the UK government has created financial schemes to support small business owners. Although it’s not easy to sort out the ones you’re eligible for, it’s okay to check online and find accessible ones.
Ultimately, define your financial needs. If you request a loan beyond your need or capacity, you could be in debt for long. Note that if you randomly apply for business loans and get declined, it could affect your future prospects of getting a loan.