How to prepare a funding application as a director

2 min read

Step 1Gather the documents

Step 2Build the repayment story

Step 3Present clean figures

Step 1 — gather your documents

Assemble the basics before you apply: recent filed accounts, up-to-date management accounts, bank statements, and details of existing borrowing. Lenders form their first impression from these, so having them current and complete signals a well-run company. See how to prepare for a business loan application.

Step 2 — be clear what the money is for

Lenders fund purposes, not vague 'growth'. State plainly what the money buys, why now, and how it pays back — a contract to fulfil, equipment to acquire, a cash-flow gap to bridge. A specific, repayable purpose is far more fundable than an open request. Match the facility to the purpose while you're at it.

Step 3 — build the repayment story

The lender's core question is whether you can repay. Answer it before they ask: show the cash the business generates, how comfortably it covers the new repayments (your debt service cover), and what happens if trade dips. Run it yourself first with the affordability calculator. A borrower who's done this maths reassures a lender instantly.

Step 4 — clean up the red flags

Before you submit, tidy the things a lender frowns at: file anything overdue, reduce a large overdrawn director's loan account, and be ready to explain any dip or one-off. See how lenders read your accounts. Getting ahead of concerns beats leaving the lender to assume the worst.

Step 5 — ask for the right amount, on the right terms

Request what the numbers support and match the term to the purpose — don't over-borrow or stretch a short need over a long term. And check the terms: a personal guarantee turns company debt into personal risk. Credicorp lends to the company, not to you personally, with no personal guarantee. Explore business loans.

Frequently asked questions

What documents do I need for a business loan application?

Typically recent filed accounts, up-to-date management accounts, bank statements and details of existing borrowing. Having them current and complete signals a well-run company and speeds the decision. Incomplete or stale documents slow things and raise doubts.

How do I improve my chances of getting approved?

Be clear what the money is for, show a credible repayment story backed by real cash generation, tidy up red flags like overdue filings or a large overdrawn loan account, and ask for an amount the figures support. Preparation is what turns a maybe into a yes.