With decades of experience in commercial finance, our experts have seen almost every possible business loan mistake possible. Our experts have identified the 5 most common mistakes to avoid and wanted to share them with you in this article. These mistakes are often made by business owners trying to manage their own loan process without engaging the services of an expert.
Not getting advice from business loan experts – Our experts often speak with people who have applied for finance before getting advice. They’ve often had their application knocked back or ended up with a product that is not best suited for their needs. If they had spoken with one of our experts from the beginning we’d have been able to connect them with the right lender and manage the process from end to end, submitting your applications and paperwork on your behalf.
Lack of preparation before submitting an application – Some applicants are let down by their lack of preparation before submitting an application to a lender. They don’t provide all the documentation a lender requires. This can lead to them getting knocked back or being offered a higher interest rate than they may have received. Engaging an expert means that the process is managed from end to end, from the filling in of applications to the submission of all paperwork.
Applying for the wrong type of finance – Business loan finance can be confusing, with many different types of finance available. If you don’t properly understand business loans and the finance options available. If you try to manage the process yourself then you may find that you end up applying for the wrong type of finance because you are unaware of the full range of business finance options available.
Picking the wrong lender – Another common mistake we’ve seen is that businesses can pick the wrong lender when applying for finance. They may just approach their regular bank, even if it’s not the best deal, or they may apply at a lender who isn’t necessarily the most supportive of their business finance needs. An unsupportive lender can be a major problem if your circumstances change. A lender may change your interest rate or seek more security from you, frustrating your plans for business growth.
Not properly accounting for all costs – It’s not as simple as choosing the lender that offers you the lowest interest rate. Lenders may have other fees and charges that mean that a loan chosen can end up costing you more in the long run.
The best way to avoid the common business loan mistakes mentioned above is to engage an expert. Our experts have decades of experience in business and commercial finance, working with a variety of industries and finance products. Our experts, with access to a panel of lenders, can help ensure you get the right business loan tailored to your individual circumstances. They will help you manage the process from end to end and ensure seamless approval. If you are ready to apply for finance, get in touch with us today.