Expert Insights: how to get financing for a business

If you are considering starting a business or are already on your business journey, there is one thing you will need to grow and evolve: business financing. However, whether you’re looking for small business grants, venture capital, or a business loan, getting business financing isn’t always easy.

While there are hundreds of small business loan and government grant providers, it can be difficult to find the right one for you and secure sufficient financing for your business. There are different ways to fund your business with a range of business loans, figure out what documents you’ll need, and start the application process to find your ideal lender. Soon you will have access to cash flow and see your business succeed.

Your business plan: focus on the laser

Before a start-up or small business considers which capital provider is right for them, they will need to understand precisely how much funding they will need. To support your high-level business plan, you’ll need to focus on cost calculations and the type of business loan you’ll need before you start producing ROI and repaying your loan.

As you may already know, nearly 30% of all new small businesses fail within the first 2 years, and a lot of that can come down to a business owner underestimating the level of business start-up risk. Not only will being specific help you better understand how much it will cost to realize your business idea, it will also help instill confidence in any lender you approach.

Review your credit scores

Commercial lenders will want a complete view of your credit score. It is important that everything is in order before approaching a small business lender. This means checking to see if you have any errors in your name, such as loans you’ve already paid off or don’t belong to you.

Remember, honesty is the best policy. It’s hard to escape your credit history, so anything you may not have been honest with will be obvious when the credit report comes in.

Have financial documents handy

Making sure you have all the documents ready to submit your application can mean the difference between a rejection and an approval. Make sure you have your company’s bank statements and latest company accounts on hand while having a clear understanding of your credit score and how you intend to use the money. If you have been trading for less than 2 years, it may also be a good idea to have management accounts prepared by your accountant or exported from Sage, Xero, QuickBooks, etc., before requesting trading funds.

Financing options for small businesses

Loan options specifically designed for growing small businesses are often the biggest difference between success and failure. So it literally pays to know as much as you can about small business loans and other financing options. It’s important to know the necessary information that will hopefully improve your chances of getting the financing your small business needs to thrive.

Secured business loan

Secured business loans are cases where the property of a business or the residential property of a landlord is used as collateral. Therefore, the amount of money businesses can get from these loans will depend on the equity available in the property in question. Simply put, the more equity you have in your chosen assets, the more money you can get.

With a secured small business grant, there is less risk for lenders (due to collateral), making it easier to get approved. It also means businesses can borrow funds over longer periods of time, up to 30 years, which also benefits them because their monthly repayments won’t be as large.

Key takeaways from secured business loans:

  • Suitability: Companies looking to reduce or erase large amounts of debt or younger companies that have not yet established financial accounts.
  • Objective: A wide range of business objectives – e.g. working capital, debt consolidation, growth, stocks, etc.
  • Amount: Loans range from £25,000 to £2 million, depending on the lender.
  • Duration: Up to 30 years. Some lenders offer interest-only terms.
  • Cost: Rates start from 4.95% per year, depending on your company’s age, affordability, and LTV.
  • Security: Our lenders can secure commercial or residential property in the UK.
  • Speed: requests can be processed within a day of receiving a complete proposal.

About Aurora Capital

Aurora Capital are independent financing brokers offering unbiased advice and optimal financing solutions for small and large businesses. Aurora Capital provides fast, flexible financing solutions to businesses of all types across all industries, including hospitality, retail, leisure manufacturing, construction, transportation, and more.

Retain full control by partnering with Aurora Capital – we fund businesses like yours to help them become high-growth businesses.

For more information please contact:

E-mail: [email protected]



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