Finance is one of the most important tools in the business toolbox. Getting the right money in at the right time can turbo charge a company and set it on a rapid path to growth. When you are looking for a medium to long term business loans how do you make sure that you are getting the right product for your business?
The place to start is in understanding that matching the type of finance to the use the cash will be put to is vital. If you are looking to fund a medium to long term project then short-term products like overdrafts, credit cards and invoice factoring aren’t the way to go. The cost of funds will be too high and it’s likely that you’ll have difficulty raising the amount needed.
Once you have settled on the type of funding you are looking for then it’s time to find a funder. What you’re looking for here is a business specialist. It’s an interesting fact that when surveyed most business owners first think of their banks as a place to borrow but at the same time most business loan applications are turned down.
Whilst they have massive backing often the big high street banks have very rigid lending criteria and a low risk appetite. Combine this with staff that don’t have the time to get to know their customers and it becomes clear why borrowing is so difficult.
Independent specialist lenders such as Nationwide Corporate Finance tend to be set up to understand the particular issues faced by businesses and will take the time to understand the differing needs of companies. It’s worth getting a third party with some financial knowledge to test you before you speak with anyone about borrowing. After all you really should know this stuff anyway.
Finally remember that no isn’t always a no and you shouldn’t give up. When a funder turns you down for a loan it doesn’t mean every funder will and you should go back and ask for feedback on your application. It’s possible that maybe some aspect was misunderstood or that you can do something differently with another application.
When you are looking to finance your business then getting the right money in place can make a massive difference to your future. Spend a little bit of time working on your application and you have a great chance of getting the right loan for you.