Business Loans and how to apply

Applying for a business loan can be easy

Need some extra cash to take your business to the next level, but daunted by the loan process? You’re not alone. There can be a lot of paperwork and number-crunching involved.

Before you get started, remember that a bank wants your application to succeed as the interest you pay is a vital revenue stream to them. So it’s up to you to make their job easy by turning up with a good business case.

Connect the dots for them. While banks are experts in money, they’re not necessarily knowledgeable about your industry. Remember to present a clear story and demonstrate clearly how the loan will unlock business growth which will ultimately ensure the bank gets paid back.

When applying for a business loan, ensure you have:

  • income statements and balance sheets for the past two years
  • up-to-date financial statements
  • business plans or project plans to show the direction your business is taking
  • tax returns to verify your income statements
  • bank accounts, also for verification

So what’s the easy way of gathering all of these documents? If you’re like so many Businesses nower days and use cloud-based accounting software such as Xero and Quickbooks -just download them! More and more banks and lenders are integrating with cloud accounting partners to allow direct access to various lending scenarios. Some lenders can make you jump through a dozen hoops to get get the funds you need, while other can make it a  breeze, so be sure to shop around or ask around and talk to your advisors.

The better platforms will produce much of the information on demand, including:

  • income and expense reports
  • growth trends
  • forecasts

So if you need a hand in sorting out your cloud-based accounting software drop us a line because we love the cloud and we want you to too! We can also get you the right advice when applying for a business loan 😉