There will likely come a time when every business needs a financial boost, but navigating the business loan application process can be complex and daunting. This guide will help you understand the key steps and considerations to apply for a business loan to help you successfully secure the financing your business needs. Here is how you can get a business loan.
1. Understand your business needs
Before diving into the loan application process, you’ll need to have a clear understanding of why you need the funds. Are you looking to hire new talent, invest in marketing, expand your product line, or purchase new equipment?
Different lenders and different types of business loan will have varying criteria and terms based on your needs, so having a well-defined purpose for the loan is essential before applying.
2. Assess your creditworthiness
Lenders rely heavily on your business credit score to evaluate your eligibility for a business loan. Review your personal and business credit reports to ensure they're accurate and up-to-date. If there are any discrepancies or negative marks, work to rectify them before applying for a loan. A good credit score can significantly improve your chances of approval and favourable loan terms.
3. Find out your lending options
There are hundreds of lenders in the UK, all offering a wide variety of lending options for businesses. How your business operates and what you need the loan for will impact which lenders might be best suited for your business. You can find out more about what the right type of business loan might be for your business.
When you search for a business loan with Capitalise, you’ll receive dedicated support from our team of experts. They’ll match you with lenders that will be best suited to your needs and most likely to approve you for a business loan.
You’ll also need to find out how much your business will be able to borrow before you start applying. This ensures that your expectations are in line with what you could be eligible for and allows you to consider if you need to reconsider your plans.
Use the business loan calculator to see how much you could borrow.
4. Gather supporting documents
Lenders will require various documents to assess your business's financial health and come to a decision on your business loan application.
You should gather the following documents:
- 6 months business bank statements
- Most recent set of company filed accounts
- Details on what your business does and what you want to use the funding for
Depending on the type of business loan, you may also need to gather documents such as your aged debtor report, or your electric point of sales (EPOS) statements.
5. Submit your loan application
Now it's time to submit your loan application. Be prepared to answer questions about your business, provide financial details, and explain your plan for using the funds.
Completing the application accurately will improve your chances of approval. The quicker you can get all the information that the lenders require ready, the quicker you will be able to access the funds you need.
Here’s how the process works:
1. Tell us about your business
Once you’ve started your application, you’ll need to provide a few details such as your business name, age and how much you’re looking to borrow
2. We match you with a lender
From our panel of over 100 lenders, we match you with lenders most likely to approve you for a business loan. One of our expert funding specialists will talk you through which lenders and types of business loans will suit your needs. They’ll let you know which documents you need and put together your application.
3. Apply up to 4 lenders in one application
Once all your documents have been uploaded to your application, you can apply up to 4 lenders at once. Use your Capitalise for Business account to easily upload your documents and keep track of the status of your application.
4. Get a business loan in as little as 48 hours
One of our funding specialists will talk you through each of the lender decisions and help you understand any terms. With an approval, you could receive funds in your account in as little as 48 hours from releasing your application.