The AAA guide to applying for finance

Before Making your AAA application - ask yourself this question

Am I applying for finance or do I just want to explore possibilities?

The reality at this moment is that the majority of 'applications' are actually just exploratory discussions.

We have absolutely no problem with general chats about the market, different types of funding or how to put a proposal together, but it is best that we understand what is happening - otherwise we just waste each others' time!

When you have decided that you want to get finance rather than just wondering, our AAA guide will maximise your chances of success.

AAA = Attitude, aptitude & application.



ATTITUDE:

In 80% of cases our initial client discussion will revolve around banking behaviour and the accessibility of bank funding.The tone will seldom be positive!

It is a great discussion & one that I thoroughly enjoy. However in the context of applying for a loan, it is frankly irrelevant.

In current market conditions, the emphasis is on you, the borrower to convince the lender - not the other way around.

Constructing a proposition around what banks used to do or, indeed what you think lenders should do will achieve nothing.

On the other hand, there is absolutely no need for contrition or grovelling. The appropriate borrowing attitude is along the lines of 'I have a borrowing requirement, what do you need to help me?'

Simple, isn't it?


APTITUDE:

Aptitude - def.n 'inherent ability'  in this case, your inherent ability to repay or service the debt.

In line with our previous three-legged stool post a lender is going to be looking at a blend of past performance, future prospects and security available to assess your inherent ability to repay.

Quite simply, the more coherent and current information you provide, the more successful your application will be.


APPLICATION:

Not the forms you fill out but in this post application refers to the fundamental question of what do you want the money for?

A simple & obvious question which remarkably often clients fail to answer.

If you are seeking asset finance for computers, or a printing press, it might seem obvious, but a lenders is going to be interested in what impact the new equipment will have on your business. (Of course, if you are replacing a few PCs the question will be less significant than if you are installing a new SAAP system).

For unsecured loans the question is absolutely key. There is no point fudging with vagaries such as marketing, or business development - the underwriters will want to know what the strategic marketing plan is and what the impact on your business will be.

On the other hand, if the application is for 'negative' reasons, such as tax arrears or filling a cashflow hole we can assist to put the right type of funding in place rather than digging a deeper hole.


In summery, we are here to guide & advise, but to get funding you must create a AAA proposition!