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How to Improve Your Chances of Getting a Business Loan Approved
Why applications get declined
Most business loan applications are declined for a handful of reasons: the repayments do not fit the cash flow, the accounts are out of date, tax affairs are not in order, or the lender cannot see clearly what the money is for. The good news is that most of these can be fixed before you apply.
1. Keep your accounts up to date
File your annual accounts with the CRO on time, and keep management accounts for the current year. Lenders need a recent picture of the business, and old figures raise questions.
2. Get your tax affairs in order
Most lenders ask for a current tax clearance certificate. If anything is outstanding with Revenue, deal with it first.
3. Show the repayments are affordable
Work out what the monthly repayment would be and show how it fits your cash flow. A simple forecast helps, especially if the loan will fund growth that has not happened yet.
4. Keep business and personal banking separate
Clean business bank statements make it easy for a lender to see how the business performs. Mixing personal spending into the business account makes assessment slower and harder.
5. Be clear about the purpose
Explain what the money is for and how it helps the business, whether that is buying stock for a contract, hiring staff or replacing equipment. A clear purpose makes the request easier to assess.
6. Explain anything unusual
A one-off loss, a dip in turnover or a large payment can all raise questions. A short note explaining what happened, and why it will not repeat, helps a lender understand the whole picture.
7. Have your documents ready
Gather your filed accounts, six months of bank statements and your tax clearance certificate before you apply. See our checklist of business loan documents in Ireland.
When you are ready, Flurish gives you a decision within 24 hours. Read about our business loans in Ireland or apply online.
