Tel: 0113 418 2058 Mob:07794734711
BUSINESS FINANCE - HOW TO PRESENT A REQUEST
These are some of the key factors used by banks to assess an application for finance:-
The Client
- Does the bank have an existing relationship with you?
- How long has your business been in operation?
- Do they understand your trade?
- What is your history with the bank?
- What history do you have in the business?
The Amount of Finance Required
- Is the amount requested sufficient (critical) & how will in be used?
- Have appropriate estimates been obtained to support the application?
- Are there any planning implications?
- Do cashflow forecasts indicate that the increased business will give rise to an additional working capital requirement?
Repayment of Finance
- Loan repaymenst are usually aligned with the life of capital goods i.e. machinery, buildings usually rank for up to 15 years.
- Your bank will likely opt for a formal loan rather than an overdraft, repayments will include both a capital and interest element. It is possible to arrange a 6 to 18 month holiday on capital repayments.
- Be sure to tell your bank about any significant seasonality in your business, as they may be able to factor this in to your repayment schedule.
Security for the Loan
- The bank will want to be comfotable that that your business plan stands up in its own right and that any security is only a backup.
- Property, bonds, life insurance policies, shares & bonds etc. are all acceptable forms of tangible security.
- The bank may want to take a floating charge on all other assets (intangible security), this applicable to limited companies only.
Reward for the Bank
- There will normally be an initial fee for set up.
- Interest will be at a market rate over the bank's minmum lending rate.
General
- Present a clear, positive and carefully considered proposal.
- Make sure you have asked for sufficient finance (including working capital) to support your plan.
- You will need to provide latest versions of accounts, always allow sufficient time for these to be prepared.
- Include profit and cashflow forecasts to prove the loan and interest can be repaid.
- Bank managers will be more likely to view your request in a positive light, if they are going to receive regular updates on your business performance.
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CIS Made Easy Ltd
Head Office
Brooklands Court
Tunstall Road
Leeds LS11 5HL
Claims Processing
CIS Made Easy Ltd
Airedale Enterprise Services
Crown Works Business Centre
Sunderland Street
Worth Way
Keighley BD21 5LE
Office Hours:
Monday - Friday 08:00 - 21:00
Saturday 10:00 - 14:00
If you have any queries please contact us:
Tel: 0113 418 2058
Mob: 0779 4734711 (text Name & Address followed by "CISPACK" or "SATPACK") & we will send you a CIS Tax Return or Self Assessment pack.
Email: enquiries@cismadeeasy.co.uk
Alternatively, please use our contact form.
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