Unlocking Your Business Potential: What Are Lenders Really Looking For?

Securing funding for your business can feel like a huge challenge. It’s easy to imagine lenders as critiquing and scrutinising every detail before stamping your application with a "yes" or "no."

But what if you reframed that thinking? What if you saw the lending process not as a hurdle, but as an opportunity to build a partnership and tell the story of your business's vision and potential?

Lenders in the Community Development Finance Institution, (CDFIs), sector aren't looking for perfection. They’re looking for clarity, purpose and a solid understanding of your business. The really great thing is about this is that you, the business owner, is already in control of the three key areas that matter most when looking for a business loan. With the right lender, you’re not alone in this process.

Know Your Numbers.

You don’t need to be a finance expert, but a solid grasp of your key figures is crucial. This isn’t about knowing everything down to the last penny at this stage; it’s about having a starting point for a constructive conversation. Thinking through these questions beforehand will make your discussion with a loan officer incredibly productive:

• How much do you need? A well researched figure shows you've done your homework on quotes for equipment, marketing costs, or whatever the funds are for.

• What will you use it for? Clearly outlining how the investment will help your business grow connects the loan to a tangible, exciting outcome.

• How will you repay it? This is the bottom line. A simple cash flow forecast is one of the most powerful tools in your arsenal. It doesn’t have to be perfect, but it should be a realistic projection of your income and expenses.

Don't worry if your forecasts feel intimidating. A good loans officer can work with you to refine your numbers. The goal is to show you’ve thought it through and are ready to build a sustainable plan together.

Be Clear on Your Story.

Numbers only tell part of the story. Every business has a journey and a "why" that drives it forward. Many lenders, especially those focused on community impact, want to understand the person and the passion behind the spreadsheet.

Your story provides the essential context for the numbers. It’s your chance to answer the important questions:

• Your Motivation: Why did you start this business? What problem are you solving for your customers?

• Your Vision: Where are you going? What are your ambitions for growth?

• Your Character: Your journey demonstrates resilience and expertise—qualities that can’t be captured in a balance sheet but are crucial for navigating the challenges of business ownership.

Don't underestimate the power of your narrative. It helps a lender see your business not just as a risk, but as an opportunity worth supporting.

Get Your Documents in Order.

Having your essential documents organised shows that you’re for the next step. However, don't let a missing paper stop you from starting a conversation. Think of this as a checklist to work towards, not a barrier to entry.

Being prepared with these basics will make the process much smoother:

• Recent Business Bank Statements: To give a honest snapshot of your business’s’ financial health.

• Simple Financial Forecasts: That cash flow projection mentioned is key.

• A Concise Business Plan: Even a few pages outlining your goals and strategy can make a huge difference. Think about your business holistically first, what are you trying to achieve? Is your business seasonal etc? Hone in from there.

If you’re unsure what you need, just ask. A supportive lender will provide a clear list and guide you on how to prepare what’s required. By thinking through your numbers, owning your story, and getting your basics organised, you’re already demonstrating the clarity and purpose that lenders want to see. You are more prepared than you think.

If you are a business in Coventry or Warwickshire and this supportive approach resonates with you, we'd love to talk. Start your CWRT journey today, by clicking below:

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