Getting a business loan could be the critical step your business needs to grow, expand, or get through a difficult period. Whether you’re a startup, or an established company, a business loan can provide the necessary funds to invest in equipment, expand your team, or launch new initiatives.
While getting approved for a business loan isn’t always an easy process, there are a few things you can do to increase your chances.
How to get a business loan
- Assess your loan requirements
Before diving into the loan application process, take the time to evaluate your specific needs. Determine what the purpose of the business loan is and the repayment terms that align with your business goals and cashflow.
A clear understanding of your financial needs will help you streamline the application process and make an informed decision when selecting a lender.
- Check your business loan eligibility
Before sending off your business loan application, it’s important to understand if your finance goals align with what a lender could offer you. You can check your business loan eligibility with your Capitalise for Business account to see how much you could borrow. This will help to manage your expectations and know what could work for your business.
- Maintain a good business credit score
Business credit scores play a vital role in getting approved for a business loan. Lenders assess your business credit score as an indicator of how risky it is to lend to your business. It will determine whether a lender will lend to you, how much they will offer and at what rates, so it's crucial to establish and maintain a good business credit score.
Top tip: Check your business credit score to see if you're in a good position to apply for a business loan. You can improve your business credit score with the Credit Review Service to increase your chances of being approved for a business loan and accessing better interest rates.
- Gather your required documents
To assess your business loan application, lenders will need to see your financial information. You should prepare essential documents such as your latest set of annual filed accounts (if available, and the last 6 months business bank statements. Having these documents up-to-date and to hand, will make the business loan application process quicker and easier for you.
- Avoid too many applications at once
While it's important to explore your different lending options, submitting multiple business loan applications at once can have a negative impact. Each time you apply for a business loan, a credit search will be made on your business, which may lower your business credit score. Multiple hard credit searches within a short period can raise concerns for lenders.
Instead of casting a wide net and applying to every lender, focus on lenders that are a good match to your business and are more likely to approve your application.
Applying for a business loan
At Capitalise, we streamline the process of getting a business loan, so you can apply to multiple lenders in just one application.
Once you answer a few questions about your business and funding need, we’ll match you from our panel of 100+ lenders with those most likely to approve your business for a loan.
You’ll receive dedicated 1:1 support from a Funding Specialist who will help guide you through the process and find the business loan that best fits your business.