The best ways that companies can gain access to vital finance

1. Consider your capital base: Ensure that it’s appropriate to both your business type and size and relative to the lending request being made. Also ensure that you have adequate cash flow; demonstrate that you have good cash flow management skills as it will help to prove your ability to cope with any unforeseen expenses or delays in payment.

2. Keep your business plan up-to-date: Detail where the company is now, where you want it to be in the future and how you anticipate getting there. Make sure that you provide information around historical performance and key figures and trends.

3. Plan ahead: Make sure you’re thinking about your funding requirements in the future and start acting upon it now. Also, have a contingency plan in place; conduct a sensitivity analysis, allowing you to consider the impact of change if activity doesn’t go to plan.

4. Set realistic budgets and forecasts: Use last year’s figures as a guide and share forecast information with other key budget holders in the business to ensure accuracy and avoid over/under estimation.

5. Consider economic factors: Whether domestic or international, research the current and predicted climate that your business will be operating in. Then consider both the risk and opportunity this presents.

6. Research, research, research: If you’re looking for funding for a new business venture, show that you’ve considered the opportunities and threats.

7. Detail your rationale for funding: Be very transparent about why funding is needed and how it will help your business to grow.

8. Conduct a competitor audit: Look at how your competitors are faring in the current market, as it may provide a valuable insight or justification for new markets/ customers you’re looking to target.

9. Know your customer base: Review how your products have sold so far and have a thorough understanding of your customer’s needs as this will enable you to make informed decisions about future projects.

10. Seek professional expertise: Having a strong working relationship with managers at your bank will allow you to develop plans in collaboration, tapping into their expertise and enhancing chances of a successful application.