Lending for Small Business

One of the biggest barriers to business growth is access to both long-term and working capital and in the last week, from various sources I have heard a number of stories of businesses being turned-down.

Businesses need to look at their position from the other side of the table. From my experience businesses are not providing the lender/investor with enough information to base a decision on. In this position the lender/investor can only make one decision……sorry. A lender wants to see a credible business plan of how it will get its money back, if a business does not have this then it should not be surprised when the answer is no. this is especially the case when the business has had a couple of poor years. How are things going to be different?

Do the same things……..get the same result.

Lenders have criticised for handing money out too easy so they are now careful but the message is that they are ‘open for business’ for the right projects

The information for the lender does not have to be War and Peace but it should be clear and show how the loan/overdraft will be repaid.

Most small business-owners do not have the experience of preparing such information and therefore need assistance, give the lender a reason to say yes……and contact a professional for advice.