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The Most Important Factors to Consider When Applying For Finance as an SME.

Every business starts off as a small or medium sized business. Grow Finance certainly was no exception. At Grow Finance, we understand what small and medium sized businesses want, what they need, how they need it, when they need it, and in what manner. We understand the ups and downs of getting an SME off the ground, and how simplifying the stresses of their finances is one major pillar to achieving business growth. 

At Grow Finance, we make it easier for SMEs to get the finances they need in order to grow their business. By securing their finances with us, we take the challenges out of the typical lengthy and draining application process. Whether that be banks, or large business lenders. 

Now, when applying for finance as an SME, there are a number of important factors to consider in order to get the most out of your funding solution. 

Firstly, it’s important to understand your finances and the overall framework of your business. Your business may not manage their own finances and statements, that’s okay. What is important is you have a basic understanding of them. It’s important for a business to understand their cash flow. That means, what’s coming in, and what’s going out. This breakdown will give you an overview of your business’s income, its net profit, its expenses and future financial projections. Once you obtain a holistic outlook of your business’s finances, you can start to understand what funding your business needs, how much, and for how long. 

Next, it’s important to have at least a business plan ready for the financial institute to oversee. Being a small or medium sized business – particularly if it’s your first business venture – you’ll already have a business plan formulated. Revise this and update any details that’ll assist in a timely approval of your application. By presenting this to your small business lender, you’ll be able to provide an overview of your financial situation and business goals & objectives.

By preparing your cashflow statement and business plan, you’ll then be able to work out your financial flexibility or ability to repay. This is important for any business lender or financial institute to be confident in. Afterall, if these institutions don’t think your business can afford the funding, they’ll feel less inclined to give it to you. Afterall, we’re businesses helping each other. Also, it’s important to know the limits of your business’s finances. You can work this out by assessing the timing or frequency of your intended payments, the maximum repayment your business can afford, the assets you could offer as collateral (if desperate), equity, and percentage of business share you’re willing to offer investors just to name a few. 

Once you’ve worked out the framework and financial status of your business (with your credit score) you’ll be able to decide on what type of finances your business needs, how much, and in what format. It’s crucial for any small or medium sized business to plan strategically at this stage in the funding process. The funds you acquire need to be a directly correlated amount that’s strategically in line with all of the factors mentioned above. 

Finally, your business needs to decide on what type of funding they require. Whether that be asset finance, trade finance, invoice finance, insurance premium finance or a business loan. If your businesses assets require a financial boost, we offer funding for business vehicles, trucks, vans, utes, solar, medical, and general business equipment. Once you’ve decided what type of financing your business needs, our Grow Finance specialists are more than happy to finalise your application and let you take full control of your business’s future. We look forward to seeing it grow.

After all, at Grow Finance, we’re the experts in lending to small or medium sized businesses. We love giving you the funding you need, in order to watch your business, grow. Contact one of our specialists today to get a free instant quote.