As an independent finance broker our job is to make the finance application process as simple as possible for our clients. We aim to make your life easier, by taking the stress out of finance. There are, however, a few quick house-keeping checks that will help to maximise your chances of approval. These may be something you already do as part of your day-to-day management, however, if not, it is a useful way to ensure all is as you expect.
Business credit search
We do very little business where directors’ guarantees are required, however a business credit search is run on every application. Therefore it is worth running a credit search on your business every now and then and checking the following is as you would expect:
Are all UBOs and associated companies correct?
This is really important, as we recently had a decline for a long-standing customer of ours, due to an issue with a parent company. We found this bizarre as had known the customer for a long time, and not come up against this problem before. On further investigation it turned out that the Credit Reference Agency had mistyped the parent company name, pulling through inaccurate information resulting in a decline. This was resolved, and we have had no issues obtaining approvals for this client moving forward.
Any missed payments?
A business report will show any missed payments by the business. Generally speaking you would be aware if any payments have been missed, but this can be a good sanity check to make sure everything is as you would expect. If there are multiple missed payments, it’s unlikely we will be able to help. However if you are aware of a missed payment and are able to provide an explanation such as, ‘This was due to a change over in direct debits’, this will help us present your deal in the best light.
The score
Most credit reports will give your business a score, but to a certain extent, this can be ignored. This is used when a credit application is auto-decisioned, but otherwise it isn’t something we take into consideration if the other information is supportive.
Companies House
Accounts and confirmation statement up to date?
We can’t progress with an application if either the accounts or confirmation statement are overdue on Companies House. The confirmation statement must be updated annually and the accounts must be filed within 9 months of your year end. You can set up reminders to ensure these aren’t missed.
Financials
Our aim is always to obtain an approval with as little information as possible from you, as we appreciate your time is valuable. In some cases, we will require supporting financials in order to provide the most competitive solution for you and this can include the following:
Bank statements
The bank account must be in the name of the legal entity taking on the finance, for a limited company this will be the limited company name but for a sole trader or partnership this could be in the proprietor or partners’ name.
Ensure a healthy balance is always maintained in your business account. If the business has an agreed overdraft limit or multiple accounts, please advise us of this.
It is also helpful if bank statements for any reserve accounts can be provided, particularly if there is movement from one account to another.
Accounts
Any discrepancies in accounts will raise questions with the underwriters. Therefore it is always worth checking that the previous year column in your accounts tallies with the current year accounts. The easiest way to check this is the net worth and the profit/ loss. You can then raise any queries with your accountant ensuring there is no delay in obtaining an approval.
Following the above pointers will ensure we have all the correct and accurate information to hand, enabling us to present your deal in the best possible way. This will ensure that we can obtain a prompt approval on the most competitive terms.