Bank Loans & Overdrafts
- Often suited to
- Established businesses with a trading history and predictable cash flow.
- Points to consider
- Repayments, interest, security or personal guarantees.
Overview
Lenders, investors and grant bodies all ask the same thing: show us the numbers.
Good preparation will not guarantee funding, but it makes every conversation clearer and helps you choose the right option. These eight tips cover what to do before you apply.
How much do we need?
Which option fits best?
What will providers expect?
Tips 1–4
Get Your Case in Order
-
Tip 01
Know Exactly How Much You Need
Build the figure from real quotes and costs, then add a sensible contingency. Asking for too little can be as risky as asking for too much.
-
Tip 02
Be Clear About What It Is For
Explain how the money will be used and how it will generate the returns needed to repay it or reward investors.
-
Tip 03
Prepare Realistic Forecasts
Profit and loss and cash flow projections with clearly stated assumptions. Include a cautious scenario — providers will.
-
Tip 04
Write a Concise Business Plan
Short, clear and written for the reader. Lead with a one-page summary of the opportunity, the amount and the plan.
Tip 6
Have Your Documents Ready
Most providers will ask for some or all of the following. Having them ready saves time and shows you are well prepared.
- One-page executive summary
- Amount required and how it will be used
- 12–36 month cash flow forecast
- Projected profit and loss
- Recent accounts or management figures
- Key assumptions and a cautious scenario
- Overview of the team and main risks
Tip 7: Check Your Records First
Before applying, make sure your bookkeeping is up to date and your figures reconcile. Check your business credit file and fix any errors — surprises at this stage can slow everything down.
- Bookkeeping up to date
- VAT and tax returns filed on time
- Credit file checked
Tip 8: Read the Small Print
Compare the total cost, not just the headline rate. Look carefully at fees, early repayment terms, security, personal guarantees and any conditions attached — and take independent advice where needed.
- Total cost over the full term
- Fees and early repayment charges
- Guarantees and conditions
Important Information
UsGoldApp is a software and education provider. We are not a lender or credit broker, we do not arrange or introduce finance, and we do not provide regulated investment advice. Funding decisions are made solely by the relevant bank, investor or grant body.
This article is general information to help you think about your business finances. It is not regulated financial, tax or legal advice. For decisions specific to your situation, speak to a suitably qualified professional. See our Disclaimer.
Keep Reading
All Articles
More Tips From Our Blog
06October
9 Financial Planning Tips Every Small Business Owner Should Know
Practical advice on building a realistic budget, planning income and expenditure, setting financial goals and forecasting profit.
29September
How to Manage Cash Flow: 8 Tips to Avoid Cash Gaps
How to get paid faster, keep outgoings under control and look ahead, so a profitable business never runs short of cash.
22September
Financial Literacy for Entrepreneurs: 7 Numbers You Should Understand
From gross margin to break-even, the key figures every business owner should be able to read, calculate and act on.
Get Started
Prepare a Stronger Funding Case
Build your forecasts and summaries in UsGoldApp before you approach a provider. Request access today.
