The state of the funding market

The government-backed emergency loan schemes that have dominated business funding over the last 2 years are coming to an end. However, there has never been so many funding options for businesses as there are today.

With such a plethora of funding options available, approaching the right lenders with the right information has never been more important.

It is crucial that businesses present their funding request in the right way if they are to secure what they need.

We work closely with businesses to help them determine the most appropriate funding solution, and then draft funding proposals that fit with what they need and what a lender wants and needs to see.

While the exact contents of a funding proposal will vary and be tailored to the situation, each proposal needs to answer three basic credit questions:

1. Why does the business exist? Does the strategy make sense and is there an appropriate management team in place?

2. What will the funding be used for, and is there a realistic and supportable plan that shows how the loan interest will be paid and the loan capital repaid?

3. What happens if things don’t go to plan, how will a funder get their money back?

Our article on business loans is here

Check out our finding the right finance article here