Don't fall foul of loan criteria
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Our team can help you find simple, affordable loans.
Clark Oliver are committed to assisting businesses and individuals with support and solutions to enable business owners access to some of the most respected finance providers in the industry.
If your company is facing difficulties it may be time to consider various finance and funding options in order to effectively move forwards.
It is important to take impartial advice and consider the pros and cons of various funding products prior to making a decision for your business.
Clark Oliver have solid relationships in place with a number of industry leading finance providers who can assist with the ultimate funding requirements for your business.
Obtaining finance can be a difficult task for established businesses never mind start ups. Its not always a straight forward process with banks and high street lenders and a number of factors can greatly impact on having your application refused.
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Most lenders will seek to look at the history of your business. This can prove extremely difficult for new start businesses where you perhaps do not have filed accounts to be able to back up the performance of your business.
Nearly all lenders will ascertain your credentials based around ‘risk’. Banks and finance providers will expect to see that your business can demonstrate the capabilities of being able to meet its liabilities ongoing. If you are unable to do so, you then become a risk for the specific lender. This usually comes down to a general credit scoring application that is usually met with a resounding ‘no’!
Banks in simple terms need to know that any money they lend to your business has a very reasonable chance of being repaid and by that, they are looking for successful businesses.
If your business is a well established one and can substantiate good trading and sets of accounts, banks will usually look at the business in a more favourable manner. However they may still look to refuse any applications if they are not comfortable that you do not pose a considerable risk to their lending.
Ensuring your Loan isn't Rejected
There are many reasons business loans may be refused or rejected. Let us help make sure your company doesn't fall foul of these criteria:
The ‘risk’ that your business may pose to a lender may be due to any adverse credit information that is available to the lender. If the business has received a County Court Judgement (CCJ) or maybe a Statutory Demand previously, then this will have a negative impact on your application.
Banks and other finance houses will usually look to secure the money they lend to your business by way of a guarantee known as a Personal Guarantee (PG). The purpose of this is that you, as the principle of the business, will become personally liable for the loan should the business not have the ability to repay it. The bank will levy security against assets of the business or your personal property. By giving security to the bank by way of a guarantee you stand a much higher chance of having the lend approved.
Well prepared and detailed applications are predominately the best way to apply for a business loan. If you submit inadequate figures or an application without much substance, banks will usually look to decline the application. Knowing what information to gather is sometimes the key to success. You need to be aware of the information required and often this can be obtained from your accountant. Previous sets of accounts and draft management accounts along with cashflow forecasts setting out the companies trading for the next 12 months are usually needed.
The funding alternatives
There are many other finance houses around other than the high street lenders and major banks.
Sometimes it may be easier to use an intermediary to take away the hassle of dealing with banks and their experience in knowing where to place your application and with what type of supporting documentation.
Please bear in mind that whilst banks can provide attractive interest rates, it can sometimes take a lot longer to satisfy criteria to obtain your business loan. Whilst other specialist lenders can often turn around applications in a very speedy manner, they tend to have higher interest rates.
Clark Oliver have access to numerous lenders in the marketplace who have different lending criteria. Our knowledge and experience of various lenders can take away the headache of having to source finance yourself. We can put your business in touch with multiple lenders or finance brokers who are sympathetic towards your position and enable a higher chance of obtaining an acceptance. As we have already said, it is important to take impartial advice and consider the full pros and cons of the various funding products on the market prior to making any decisions for your business.