Business Owners: Keep an eye on the bank account

If you’re a business owner and you’re considering applying for funding in the near future, it might be worth having a look at your recent bank account activity.

  • Are you constantly up at your overdraft limit or even exceeding it?
  • Have you had any returned Direct Debits?
  • Is it obvious that you are paying creditors in instalments? (Round value payments)

These are things that are a red flag to lenders and could mean that a loan request is rejected even if everything else stacks up. 

Lenders usually want to see at least 6 months of business bank statements. And if you’re applying for a Commercial Mortgage they will want to see personal statements too. 

I know it’s easier said than done but try and keep an eye on your bank account conduct to ensure you stay within its parameters and that there is sufficient cash to cover any direct debits that may be coming up. 

A slight oversight could be the decider on whether your loan is accepted or not. 

Leave a comment

Your email address will not be published. Required fields are marked *