Originally written by Anna Jordan on Small Business
Securing finance is often one of the biggest challenges a start-up business will encounter.
We caught up with Richard Bearman, the managing director of Start Up Loans, to find out where you should begin.
What can start-up business owners do to improve their chances of securing a business loan?
Securing a loan is often crucial to the success of any new business, and I’m often asked what people can do to increase their chances of getting one.
First and foremost, it’s important to have a clear and sensible business plan. This may sound obvious, but you’d be surprised how often business plans are overlooked, as businesses rush ahead to get their idea off the ground.
While it may seem like an unnecessary piece of work for the person setting up the business, business plans provide all the information that a potential lender needs in order to gauge the prospects of the business. It doesn’t matter whether someone is applying to an alternative lender or to a lender such as a retail bank, it’s vital that they present a clear, realistic and sensible business plan to convince the funder that their business is worth investing in.
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