Allica Bank’s Regional Relationship Managers set to help SMEs avoid funding rejections
Businesses across The Midlands are being given crucial advice to help improve their chances of success when applying for funding, after research from Allica Bank shows well over half of local businesses have had funding applications rejected.
The research conducted by Allica Bank found that 58% of businesses in the Midlands have had previous funding applications declined and just under a third (32%) of businesses say they aren’t confident their funding needs will be met by a single lender – doubling or even tripling the risk of funding rejections.
Given that almost half (46%) of businesses may be looking for funding in the next 12 months, Nargis Quraishi, Allica Bank’s Business Relationship Manager in the region, provides the following Top Tips for businesses applying for funding:
- Be prepared: have up-to-date financial accounts and business bank statements ready to share.
- Be Transparent: complete transparency can improve your credibility in the eye of the lender. Provide any additional information you think might help the lender assess your application upfront. Any gaps could only lead to more questions. If in doubt, the more information the better!
- Be thorough: Not all loans will require you to share a business plan, but consider submitting one anyway to really tell the story of your business and increase your credibility.
- Be timely: The earlier on in the process you provide this information, the quicker you could get a decision. Even better, have it ready to share on the day you submit your application
- Be complete: Information to consider sharing: financial accounts; bank statements; business plan; evidence of any cash deposit; a summary of whether your business has been affected by COVID-19, and, if relevant, how it has coped and dealt with the effects of the pandemic; information on the asset/property you are borrowing against (if applicable); and details of any ongoing debt/repayment obligations.
Nargis Quraishi encourages businesses to put themselves in the shoes of the bank: “The best advice we can give to business looking to apply for funding is to take your time and really asses your application. Try and answer any questions a bank might have before they have a chance to ask them. Take covid, for example. It won’t always be clear from your standard Management Information how the pandemic affected your business. A short one or two-page summary could really help the bank to look favourably on your application.”
Nargis added “One thing lenders take a lot of time to review is the affordability and serviceability of the funding a business is applying for, so ensure you have a robust plan for repaying your finances. This will not only encourage banks to approve your funding, but also set your business up with a affordable and achievable repayment plan you can stick to.
“Finally, if you need any help along the way, speak to your relationship or lending manager. They should provide you with as much support as possible, answering any questions you may have and tips on what to include within you application and in some cases, such as with Allica, they can do the application on your behalf.”