By Funding Options on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs
With the tail end of 2021 in plain sight, you’re probably busy wrapping up (or perhaps even scaling up) ahead of Christmas. If you haven’t already done so, you’ll also be preparing to submit your business’ tax return in time for the January 31, 2022 deadline.
Before saying farewell to what’s been – let’s face it – a rollercoaster year, why not also take some time away from the desk or shop floor to plan for next year? Establishing clear business goals – and understanding how you’ll achieve them – is the key to success.
Following a year beset with uncertainty, lots of business owners are planning for growth in 2022. If you’re one of them, you might be considering hiring more employees, introducing a new product range, entering a new market or upgrading some outdated equipment to a newer model that will enable you to run more efficiently.
However big or small your ambitions are, the right type of business funding can help you turn your goals into reality. You don’t have to wait weeks or even months to source finance for your company. Fortunately, the days of having to fill out reams of paperwork are also over.
Business finance marketplaces like Funding Options are making it easier for businesses to find funding and are breaking down some of the barriers the SME community has traditionally faced when it comes to securing finance.
Who’s eligible for business finance?
It’s impossible to summarise who’s eligible for business finance in a few bullet points because one lender’s criteria can differ significantly to the next. It also depends on what funding type you need. Imagine you need a new vehicle or equipment, for instance.
If this is the case, you might decide to apply for asset finance so that you can spread the cost instead of buying it upfront. The current and re-sale value of the asset will play a part in the underwriting process. And as always, credit history and financial performance are also important. Asset finance can only be used to fund an asset, but other types of business finance can be used for any legitimate business purpose.
If you run a shop or ecommerce business, you might apply for a merchant cash advance. If so, it’s likely that the lender will require evidence of how many transitions your business handles each day, week and month. These are just two examples – there are many more.
When it comes to trading history, some lenders will accept 6+ months whereas others will insist on a profitable and active trading history of at least 1-2 years. As you head into 2022, it’s also important to keep in mind that a lender could be alert to any late payments and CCJs and could also assess your personal credit history when making a decision.
What do I need to apply for business finance?
If you’re looking to secure business finance quickly, it’s always worth having your documentation ready for when you apply. Failure to do so could end up in you having to wait longer and potentially postponing your business’ growth plans.
Generally, lenders will want to see two years of accounts, up-to-date management accounts and bank statements. Again, some lenders will lend to businesses who have been trading for six months or more, so definitely don’t rule yourself out if this applies to you.
There are even lenders out there today who don’t require any of this information for lower funding amounts.
Apply for funding today
You don’t have to wait until next year to secure business finance.
If you’re thinking about how you’re going to fund your 2022 growth plans, you can use the Funding Options platform to see what you could be eligible for today. Checking your options is free and doesn’t affect your credit score.
Funding Options’ award-winning technology matches your business’ needs with the right lender and finance options accurately and at speed. It covers a wide range of finance types, from asset finance and merchant cash advances to revolving credit facilities and more.
We know that when it comes to cash flow, timing is everything. Funding Options’ record from first enquiry to money in the bank is 18 minutes (it’s 20 seconds for enquiry to approval). If you do go on to apply for finance, the majority of lenders will reply within 24 hours.
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The post How to prepare for business growth in 2022 appeared first on Small Business UK.
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Funding Options, Khareem Sudlow
