Cash is the lifeline of a small business or start-up. The availability of easy cash loans help businesses grow, strengthen their R&D (research and development), expand their frontiers, operations and marketing collaterals, hire new staff and much more.
There is a plethora of funding resources to avail small business loans in the UK. From conventional main street lenders to online private lenders, there are unending borrowing alternatives available for businesses seeking to grow and flourish.
It is thus important to stay credit worthy in the entirety of your business cycle. Manyatimes, business owners realise their mistakes only after their application for loans is rejected. Let’s find out what all matters when you seek a loan approval. Realising these factors you could be rest assured of the approval of your loan application.
The lender would eventually base loan approval on your risk profile. If you have poor credit rating, you may consider using a broker’s assistance to know how to search hassle free short term business loans for bad credit. Many experienced brokers help borrowers find bad credit loans without any upfront fees.
Keep following factors in mind when you need swift loans for your business.
Your credit rating is one of the most important factors that help you avail swift loans. A lender will always assess your credit report and make a note of your credit score and credit history. Whether you have been making timely payments in the past or not, whether you have high credit card balances and debt to income ratio, all these factors would reflect on your credit report.
Working on these factors can help you remove many red flags in your report. A broker can help you understand and work on the various issues in your report.
Debt to Income Ratio
Before extending a loan, a lender would like to know about your affordability for repayment. They would try to assess your debt to income ratio by closely looking at unsecured and secured loans you owe. They would try to assess your current cash flow as this will help them gauge if you would be able to repay the loan on time.
The assets you own for your business including business premises, car, cash and accounts receivables help lenders gauge your real financial situation. Despite bad credit history if you own your own work space and car, you could conveniently avail secured business loans. Your assets help to prove the capacity to repay the additional loan, and the application is approved more swiftly.
Length of Business
The age and length of your business determines your experience in the industry. It is more difficult to get loan for a start up with tainted history rather than the business that is operational from several years. Manytimes, your suppliers, investors and clients make a key difference in the treatment of your loan application
You business financial statements determine the credit worth of your operations. According to your loan application and size of loan requested, the lender would ask for financial statements. It is also important to work on accounting records. You should be able to provide 3 key statements such as balance sheet, income and loss statement, and cash flow statement audited by the CPA.
Last but not the least, contact a professional loan advisor with all these details. Being a professional loan expert, they will introduce the best match loans. You can compare and choose according to your convenience.
Maria smith is a financial advisor at Best Short Term Loans. She has majored in Debt and Credit Management and has been serving FinTech industry for the past five years. Currently she writes articles and blogs for borrowers struggling to avail personal loans with poor credit. To find more tips and information on short term loans for bad credit you can click here.
Best Short Term Loans is a customer oriented loan broking firm in the UK. We abide by all FCA regulations and search for hassle free short term loans 12 month for people with good, bad or no credit history. We help people struggling with cash shortages find affordable loans without a delay. We help bad credit borrowers assess their credit situation and search for only affordable loans from a pool of reliable lenders. We never ask you for any upfront fees. We share free loan advice to all the customers who contact us by filling a form on our website. We never share your details to the third party and ensure that you avail safe and secure best short term loans available in the UK.