How to strengthen your company before applying for finance

Step 1 — get your filings current

Overdue accounts or a late confirmation statement at Companies House are an immediate red flag — they suggest a company that isn't on top of itself. Before you apply, bring everything up to date. It's the cheapest, fastest way to look more fundable. See filing obligations.

Step 2 — clean up the director's loan account

A large or growing overdrawn director's loan account worries lenders — it looks like cash being extracted rather than retained. Reduce or clear it before applying where you can. A tidy loan account presents a much cleaner picture. See how to run a loan account properly.

Step 3 — show your current trading

Filed accounts can be a year old. Prepare recent management accounts to show how the company is trading now — especially if it's improving. Lenders lend on the present, not the past, and up-to-date figures let you make your strongest case. See how to prepare management accounts.

Step 4 — get your ratios in shape

Know and, where you can, improve the numbers a lender checks: debt service cover, gearing and working capital. Collecting a few overdue invoices or holding off on new commitments before you apply can nudge the ratios the right way. See how lenders read your accounts.

Step 5 — prepare your story

Finally, be ready to explain the purpose, the repayment, and any wobble in the figures. A clear, confident story beats a lender's worst assumption. Run your own affordability first with the affordability calculator. Credicorp assesses the company, not your personal wealth, and takes no personal guarantee.