Credit scoring is part of the process used by banks and other lenders to help assess whether they will lend to you. My latest report on the SME finance Appeals Process shows that a poor credit history is the most common reason for a business owner to be turned down for bank finance – in fact, over half of applications that were rejected over the past 15 months failed for this reason.
If your application for bank finance has been turned down, you can appeal the decision. The process is much easier than you might think and, even if your appeal is unsuccessful, it will have no impact on any future applications for finance you make.
Applying for business finance can feel daunting for SME owners. With businesses to run and limited resources, many could be worried that applying for finance will eat up time they simply don’t have.
A business plan describes where your business is now, your aims for the future, and how you expect to achieve them. In addition to obtaining finance, a good business plan can also help you to remain clear about your strengths, weaknesses, targets and performance.
Formally launched on 1 August 2012 the Bank of England’s Funding for Lending Scheme is designed to boost their lending by reducing bank funding costs. This allows banks to reduce the price of new loans and increase their net lending.
If you are starting a business and looking for finance, make sure you’re prepared to answer the bank's questions and can back up your answers with research as much as possible.
Professor Russel Griggs, Independent External Reviewer of the Appeals Process. In my role as Independent External Reviewer of the Appeals Process, I am often asked whether I think the appeals scheme is really improving how small businesses access the right finance.
The latest SME Finance Monitor results were released last week, and it’s great to see so many SMEs reporting that business is brighter.
Britain’s largest banks have joined forces to support a network of business mentors across Britain. Mentorsme.co.uk is the UK's first specialist online portal for businesses looking for mentoring services.
When you apply for a loan, your bank will ask you for a variety of details. Most banks usually provide a detailed guide to help you through your application, but this checklist provides a good starting point for your preparations.