ACCA - The global body for professional accountants

What will finance providers require?

A business needs to be well organised and prepared in advance of applying for any type of finance. Finance providers will typically require some/all of the following:

  • purpose of the loan: exactly what the loan will be used for and why it is needed 
  • the amount required to achieve your purpose
  • the structure of the business and management profile
  • the history of the business
  • historic accounts showing past performance of the business and asset position of the company
  • management accounts to provide details of the business’s expected financial performance going forward
  • cashflow projections to ensure that the business will have sufficient liquid funds to service the debt
  • a business plan – new or start-up businesses in particular must have a well-prepared business plan
  • credit report – all lenders will check the credit status of a business
  • good previous relationship with lender
  • personal financial statements on the principal owners of the business
  • personal guarantees or collateral as security for the loan. 

The better prepared a business is, the smoother the process of applying for finance will be.

Now choose the type of finance best suited to your needs:

Barter
Bank loans
Business angels
Business credit cards
Cashflow finance / invoice factoring
Friends and family
Grants
Hire Purcahse / Leasing
Options 
Overdrafts 
Stock market listing 
Trade credit 
Trade loans

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Last updated: 17 Oct 2012