Preparing your business accounts before you apply

What a lender is trying to establish

Not whether your business is impressive, but whether it generates enough predictable cash to cover a new repayment alongside everything it already pays. That question is answered from your records, so the quality of those records shapes how quickly you get a decision.

Have these ready

• Bank statements covering the most recent six to twelve months, unedited.
• Your most recent filed accounts, or management accounts if you file annually.
• A short summary of what the money is for and what it will change.
• Details of any existing finance, including balances and monthly commitments.

Explain the dips

Seasonal businesses have quiet months, and that is normal. What causes hesitation is an unexplained dip. A single sentence — a quiet quarter, a large one-off purchase, a customer who paid late — removes the ambiguity and usually removes the delay with it.

Be specific about the purpose

"Working capital" is a category, not a plan. "Stock for the November trading period, repaid from December takings" tells us what the money does and where the repayment comes from. Specific applications are easier to assess and easier to approve.

Do not over-borrow

Ask for the amount the plan needs. A larger facility means a larger monthly commitment, and a commitment that strains cash flow is a problem you will meet every month for the length of the term.