When your business needs a business loan, it can sometimes be difficult to know where to turn.
In a series of articles, our business manager, Jordan Berg, dissects the application process to help give you the best chance for success with your business loan application.
The second article in this series explores how to define your financial needs.
Defining Your Financial Needs
Before you begin the application process, consider why your business needs this funding – you will need to clearly articulate how this finance will be used to support the business.
You then need to decide how much to apply for.
This can often be a challenge – the circle of thought “is that too much?” “will that do?” “but what if this happens?”. The overall message is to be specific, calculate what you can and add a small contingency.
For example, if the scenario is to invest in equipment to stimulate growth, research what equipment you may need and be realistic with the costs.
Total all the costs and any associated costs of operating at increased capacity e.g. utilities, staff and other considerations that may be specific to your sector.
It is important that you consider how your costs will change as the business grows.
What’s Next? For the next article in this series, Jordan will be exploring how to determine what is affordable.
About SWIG Finance
SWIG Finance is the South West’s leading Community Development Financial Institution. We are passionate about bringing social and economic benefits to people and places in the South West.
We do this by providing support and finance to Start Ups and growing SMEs that can create and secure employment opportunities.
As the South West’s leading delivery partner for Start Up Loans UK, we can provide Start Up Loans from £500 – £25,000. For more information visit https://www.swigfinance.co.uk/start-up-loans/
We also have loans from £25,000 to £250,000 available to South West SMEs who cannot access sufficient funding from their bank https://www.swigfinance.co.uk/funds-available/
For an informal discussion about your funding requirements, get in touch with our friendly and professional team to find out how we can help: firstname.lastname@example.org / 01872 227 932.