The ASC Blog
Six common mistakes businesses make applying for finance
We all love a list. And now it’s coming up to the time of year most children in the UK are hurriedly preparing their list for Santa Claus. And we have Buzzfeed filling our smartphone screens with list after list of things that you’re just not quite that you needed to know. Fun though. So, we thought we’d get involved and compile a list of what you need to remember when you’re planning for financial investment from an outside source.
1. Thinking too big too fast
It’s obvious that not all businesses will become the next ‘unicorn’, hence the name, and we have seen in the past rather ‘ambitious’ plans that would entail toppling the market leader in a year! You should always dream big, but always plan sensibly.
2. Not having done your sums
A key part of any plan for your business is knowing how much finance you need, and how you plan to repay it. If you haven’t done your sums, then you might need to adjust your business plan!
3. Being too proud to ask for help
We take pride in our work and so do you. That’s why it’s sometimes hard to ask for help. Don’t be afraid to ask for it, you should always be willing to speak with your friends and contemporaries and if you think you need the services of a financial advisor, you probably do.
4. Getting fixated on one solution
Business finance can be a complicated market. There are so many options there but this does mean that you have various options for delivering the funding that you need to grow your business.
5. Leaving it too late
In some circumstances, such as needing a bridging loan, finance can be arranged very quickly, but this is not always the case. The funds can take a while to come in to place. Factor in potential delays to your timeline.
6. Giving up!
Don’t. Many of our clients have been turned away by their bank when applying for finance. There many different types of lender and not meeting the criteria of one doesn’t mean you meet others’.