Firms need to prepare before applying for a business loan

Firms need to prepare better before deciding to apply for a business loan, one expert has recently cautioned.

British Bankers Association chief executive, Angela Knight, recently remarked that small business bank account holders need to provide as much information as they can regarding their firm to lenders if they decide to seek venture capital.  Ms Knight said in a recent BBC podcast that the most effective way to secure business funding from a financial services provider is to ensure that business owners have a keen understanding of the market in which their business operates.

The official from the BBA said that business owners should ask themselves several key questions before applying for a loan.  Owners should examine the growth and vibrancy of their business as well as its customer base in order to make thorough preparations for any meeting with a loan provider, she added.

In related news, the business sector is suffering from a lack of availability of finance, which has led to many smaller businesses struggling to grow in the wake of the worldwide economic recession, suggested one expert.

The economic downturn has made the business landscape a difficult one for many owners.  Many companies are encountering challenges with their growth plans as a result, said a Federation of Small Businesses spokeswoman.

The FSB representative stated that recruitment has been stunted amongst smaller companies due to financial concerns.  She also said that many business managers would demonstrate a willingness to expand if only they were incentivised better in the form of easier access to finance from banks and building societies.

The business expert added that some of the main reasons behind curtailed expansion efforts were not only the cost of credit, but also access to finance, cash-flow, and the state of the economy.

 

© 2020 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

Tags: , ,