If you want your finance application to succeed, you need to ensure that your potential lenders understand that you're reliable and capable of making all of your repayments on time. But how do you prove to someone who may never have met you that your company isn't high risk? Here are four steps that you can take to engender trust.
1) Make Sure Your Business Is Running Smoothly
One of the most important things to do before applying for funding is to ensure that your company is in good shape. Get your financial records up to date and available for review, manage your company bank accounts well, demonstrate you manage your current debts, and always be aware and aim for a good business credit score. Lenders will often review you business by your online presence as well so make sure that your website and social media accounts are up to date. That way, if your prospective lender attempts to find out more about your business, they'll see that you're running a professional operation.
2) Select a Lending Instrument That Suits Your Company's Needs
If you apply for financial products which aren't appropriate for your needs, it could create a bad impression, so doing your research is a must. Lenders want to know that their clients understand what they've signed up for and what their obligations are. Making inappropriate or even random applications could damage your chances of obtaining finance in future, so always consult an independent financial expert before approaching a lender.
3) Apply For One Product At A Time
If you need finance quickly - to purchase more vehicles, for example, or to pay unexpected bills - it can be tempting to take a scattergun approach to applications. However, not only could receiving multiple rejections damage your credit rating, you could also alienate lenders who you may want to utilise further down the line. If you're sending out multiple ‘cut and paste’ applications, the quality of those applications is likely to suffer. Focussing on producing the best application that you can for the most appropriate lending instrument is far more likely to have positive results.
4) Provide Lenders With All The Information They Require
One of the best ways in which to inspire trust is to ensure that you present a prospective lender with all the facts, figures, and evidence that they've requested. Make sure you answer their questions openly and honestly - and preferably before they’ve actually asked them. Finally, focus on building a relationship with your lenders and provide them with updates as your business and your situation changes. This could stand you in good stead when it comes to applying for further funding from them in future.
You'll find more tips on how to obtain the funds you need in our free Guide to Funding and Financing For The Vehicle Rental Industry. This information-packed booklet also includes details about how we can help you to find suitable lenders and assist you with your finance applications.
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