FINANCE
The Business Bulletin
For my business to raise finance, who do I need to know? While an arrangement to borrow money for a business is between a client and the lender, there are numerous other individuals involved to help the process with many needed before the application is even considered.
In fact, I would say that the success
general advice regarding taxation
in a presentable manner, then this
of an application and drawdown
and how to structure their business.
can be the difference between a
facility for a business is dependent on the ‘power team’ in place to assist with all the individual requirements
An accountant’s advice and cooperation is hugely important
successful application and a decline. If you instruct your accountant to
when applying for finance. It is
have a ‘lenders pack’ in place prior
likely that a lender will require full
to a formal application for finance
copies of filed trading accounts
you are much more likely to be in a
plus up-to-date management
position to apply quickly and with
Every business needs an accountant,
information and tax returns. If these
success.
both for auditing reasons and for
cannot be provided on time and
of the lend.
Your accountant
This ‘pack’ may include the following: ■ The last three years of trading
A broker is likely to have access to multiple lenders, many of which may not be available to the general public
accounts ■ Management information ■ A detailed profit and loss and cashflow forecast for the upcoming 12 months
A good and trustworthy solicitor While a smaller facility is unlikely to require a solicitor to be involved, a loan or overdraft facility secured against a business asset, especially a property, will require a solicitor to be instructed to complete the legal formalities.
6 | Issue 20
