Issue No. 60 - August/ /
How to access business finance
by David Mackie
That well-known adage, ‘you never get a second chance to make a first impression’ is very pertinent when it comes to successful access to business finance.
Knowing your business, and being prepared, will typically lead to a positive result so the business can acquire that new vehicle, equipment or building with a minimum of fuss.
Being prepared can be as simple as establishing a ‘My Business Credit’ file and compiling the information necessary to tick a typical set of financier’s boxes. Approval is very much about ticking boxes. In doing so you help to create the vital credit profile of your business illustrating that you are on top of your game and building a case for ongoing financier support.
What are the boxes that typically need to be ticked?
Businesses are established under a variety of structures as simple as Sole-trader with a Registered Trading Name, through to Partnerships or Pty Ltd Company structures, some of which may also have a Family or Unit Trust attached.
Your structure can be confirmed via www. business. gov.au and a free ABN Look UP printed. Alternatively, clarify your structure with your accountant. - Know your structure: the Applicant Entity, its ABN and any Registered Trading Name.
While being able to table a glossy corporate profile or 30-page business plan isn’t required in most SME lending, the historical experience of business owners that qualify them to run such an enterprise successfully, and the history of the business, are key factors.
- Know the business history, what the business does, how its income is derived, key contracts/clients, staff numbers, past successes and future plans. How long the business has been in current o...