Stephen Johnson, managing director of commercial mortgages at Shawbrook Bank, offers his top five tips on securing a commercial loan
Be prepared and do your homework
You are selling your merits and that of the business; the easier you make it on the bank, the smoother the process will be.
Keep good financial records
You know the business, but do you have good controls? Have evidence to hand of your own strong personal credit profile, as well as that of the business.
Be realistic and don’t hide anything
It will come out and non-disclosure will make the risk teams nervous. Be upfront on “negative” aspects and do what you can to mitigate them.
Don’t accept a first “No”
It does not mean your business is not fundable. Keep trying and exploring the breadth of lenders out there.
Consider using a professional adviser
You would not think twice about paying an accountant for book-keeping/tax services, so why wouldn’t you want an expert helping you to raise finance? Using a qualified professional – like NACFB-accredited intermediaries – gives you a superior overview of all the lending options and impartial advice on how best to approach them.
For more information, visit shawbrook.co.uk