In this guide we'll show you how to find a business loan for your new company in the United Kingdom. If you plan on starting a new business, read on to find out how to prepare your paper work and get everything in order for making an application for a start-up loan.
Preparing yourself and your paperwork
Before you make the commitment to become self employed and obtain your start up loan, there is a lot you can do to help yourself.
Research your business idea thoroughly. Doing your homework on your competitors and the services they offer will not only help you find a gap in the market, but it will also help you to identify a pricing point for your product or services.
Audit what equipment and premises you will need to get started and make an accurate and realistic list of financial requirements. Next, appraise your personal finances. What can you afford to buy without taking a loan? If you are still working, start saving as much as you can to secure your business and personal life in the first few months of operation. It is very rare that business will start turning over large profits in the early days of its operation. Business plan
The next stage is to formalise this information in a business plan. This is an essential document which you will be using when you are approaching sources of financing. Search the internet for templates or ask at the local branch of your bank for a free business starter kit.
Obtaining a loan
Regardless of whether you need to obtain a loan, it is an excellent idea to start a business bank account. This will help you keep your personal and business funding separate. When this is set up, approach your account manager with your business plan. You will need to arrange an appointment with this person to get small business funding. Preparation is key
Be sure you can answer questions about your company's accounts, expected trading volumes and your target market. Sell your business with enthusiasm and provided that your business plan is sound, then you should have no problem in obtaining moderate loans from your bank. If you do get a business loan, be sure to show how you intend to pay it back. If you are aged between 18 and 30, are based in the UK and are a first time small business operator, then you may qualify for help and assistance from the Princes Trust. This charity helps young business owners with interest free loans, grants and pairing with a business adviser.