5 easy ways to maximise the chances of securing finance for your business

Here’s your need-to-know guide of the top five, best and easiest ways to maximise the chances of securing funding for your business, when applying with lenders in 2023.

1. Just one application at a time!

If there’s one thing to keep as a top consideration when applying for finance, it’s this; do plenty of research, ask plenty of questions, but only submit one application at a time.

Making a number of credit applications within a short period of time can have a negative impact on your credit score, meaning that it is extremely important to be selective when deciding which lenders to submit applications to. Don’t know which lenders are best-suited to field an application from your type of business, or need a hand finding the right lender? Check out our free online loan-finder, to view your best option from 85+ lenders.

Note: Whilst it isn’t always possible to submit just one application, it is important to protect your credit score by minimising the number of times you apply.

2. Be prepared

When approaching lenders to fund your business venture, preparation is key when it comes to a successful application. Lenders want to understand not only your business, but also your loan requirements, so by having clear and accurate information on-hand, you’ll be equipping yourself with everything you need to get lenders on side!

Here are some common questions lenders often ask upfront:

• How much do you intend to borrow?
• What’s your preferred repayment term for the loan?
• How has your business performed over the last month, quarter, and financial year?
• Do you have any existing loans or liabilities?

3. Get your paperwork ready

It’ll only take you a few minutes to do, but getting your supporting documentation together will save you time and energy in the long run. Having all of your paperwork ready is imperative to submitting a successful application.

Here are a few documents you can expect to be asked to provide:

• Business registration details
• Financial statements
• Tax statements
• Cash Flow statement
• Balance Sheet

Note: Some lenders may require you to provide an up-to-date business plan, your most recent business financials and other documentation that other lenders may not. It pays to speak with your accountant or business specialist and prepare these documents ahead of time. If you’re asked for a document you don’t already have, you’ll likely be able to use the organised data to create it quickly.

4. Know your credit score

Let’s get straight to the point. Your credit score is an assessment of your credit worthiness in the eyes of lenders, is calculated based on the personal management of your finances and is often used to assess your eligibility for finance.

You can improve your credit score by paying bills on time, abiding by credit contracts, and ensuring billable details are up-to-date. If you realise you won’t be able to meet a repayment on an existing contract, be proactive by explaining the situation to your lender as there are often procedures for these events. Missing repayments will lead to a poor credit rating, which can seriously affect borrowing capacity.

Important: Checking your credit score can often unwillingly lead to multiple enquiries on your credit file, which can negatively affect your credit score. If you’re after a new or refinanced loan, we recommend talking to one of our lending experts, who can check your ability to access finance without negatively affecting your credit score.

5. Be on the lookout for hidden fees

If you’re not on-the-ball, you may miss hidden fees and charges that lenders apply, which can quickly add up after your loan settles!

There are a few different fees and charges that lenders often apply to different types of products, with fee structures varying significantly. Some to watch out for include early repayment fees, origination, and maintenance fees. When applying for finance, make sure to ask the lender for an upfront calculation of all the fees in a dollar ($) amount, so that you can reference this sheet if there’s any confusion down the track.

Think you’re ready to apply for finance?

Congrats! If you’d like a free check of your application, or just want to ensure everything is in tip-top shape, we’re here to help. We’ve secured over $1.3 billion in funding for more than 14 thousand business owners to-date, and can help place your application in front of the right lender with the lowest rate.

Give us a call on 1300 780 568, or submit an enquiry below, and we’ll be in touch to get you the funding your business deserves.