Business LoansOUR THOUGHTS AND REFLECTION  – Business Loans Processes

To celebrate reaching a milestone in the business of reaching stage 3 in the development of the business early we decided to reflect on the business loans market and businesses that require funding.

After working through many cases we have discovered that the main issue, the thing that frustrates businesses the most when applying for business loans is the requirement for a lot of information. We understand how this feels having been on that side of the market many times, We have run businesses that needed business loans and had to go through this process. We have worked with funders and brokers who also get frustrated, not receiving information and not recognising that businesses have to keep running and the day to day tasks in most cases take priority.

This need for information is driven by the funders and there is no one set formula. As more lenders come into the market the challenges increase. You as a business are required to provide all this information before you can get a decision.

The reason for that is underwriting, every funder has an underwriting criterion and this is how they manage their risk. A person or a team of people work through your information to determine if your business is suitable for a loan. These criteria are based on generally 3 things

  1. The reason for the loan
  2. Affordability
  3. Security

Other factors such as the history of the business, trading performance and Directors status influences the points above.

The challenge as a business is how do you know before you apply for business loans what information you will require? Online business advertise ‘ quick decisions’ we have found in most cases this is impossible and at worst misleading, as you will need to get all that information together before a decision can be made.

What you may get is a ‘quick decision’ to say Yes to your last accounts as they look good.

To get a business loan of any form you will need to prepare the information and have all angles covered. Even with this information neatly filed, there are the questions that need answers,  which company, which product, what term, what interest rate etc, to research to find the best deal.

Our research has found that most businesses get frustrated at the constant requests for information and we understand why.

To that end, we provide a service free of charge that will instruct you and guide you through the process. We look after compiling the data, research the market for the loan of finance best suited to your needs and put at least two options on the table for you to choose from.

To find out more check our short video or contact us through our chat button or contact us through the forms or via email, we make contacting us easy. Just like we want to make funding your business easy for you. Contact us NWBF Funding Simplified