Securing Business Funding - The Do's & Dont's for Obtaining Credit
Top Tip - Your credit rating is very important for securing bank funding.
Here are the Do's and Don'ts for credit to help you secure funding.
Do:
• Ensure that the turnover through your account is as regular as your business will allow
• If you have an overdraft, ensure the balance of your account is periodically in credit and that you don't become reliant on your overdraft
• Develop a history of successfully repaying borrowing
Don't:
• Pay credits into your account irregularly or have periods with no credits at all; cash businesses should be aware that the bank will only see what you pay in and will base its assessment accordingly
• Run a continual overdraft as it may indicate that you are not effectively managing cash flow
• Issue cheques or other payment instructions while there are insufficient funds in your account
Did you know?
HSBC currently approves 85% of small business lending applications, but in the event you are turned down, you can appeal the decision. HSBC has a free on-line tool to help you put together a strong business plan to support your lending application:
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<<Back To Grow
Top Tip - Your credit rating is very important for securing bank funding.
Here are the Do's and Don'ts for credit to help you secure funding.
Do:
• Ensure that the turnover through your account is as regular as your business will allow
• If you have an overdraft, ensure the balance of your account is periodically in credit and that you don't become reliant on your overdraft
• Develop a history of successfully repaying borrowing
Don't:
• Pay credits into your account irregularly or have periods with no credits at all; cash businesses should be aware that the bank will only see what you pay in and will base its assessment accordingly
• Run a continual overdraft as it may indicate that you are not effectively managing cash flow
• Issue cheques or other payment instructions while there are insufficient funds in your account
Did you know?
HSBC currently approves 85% of small business lending applications, but in the event you are turned down, you can appeal the decision. HSBC has a free on-line tool to help you put together a strong business plan to support your lending application:
<< Back To Grants & Funding
<<Back To Grow
