1. Check yourself before you wreck yourself
Do a credit check on yourself first, This won’t show up on your record and you can see what information is being held on you. If any of the information on these is incorrect, get it put right before you apply. Lenders will do their own check on you to see how good you are at repaying any previous borrowing.
2. Show affordabilty
Recent bank statements will need to be submitted (usually the last 3 months) to show that you can afford any repayments. If your account shows any returned payments because have insufficient funds or you are living on your overdraft, you will need to rectify this first and show that you can manage your money.
3. Honesty is the best policy
If you have something on your credit file that could be a concern for a lender, then tell them. Lenders will often respond more favourably when they have the full picture.
4. Keep up to date accounts
If you are already trading, make sure that your accounts are up to date. These don’t have to be prepared by an accountant and they can be as simpled as a spreadsheet or accounts book but it’s important that you can demonstrate that you know how your business is performing. If possible, have your business bank account statements to hand.
5. Prepare a business plan
A business plan should be a concise document outling your business or idea, show how you intend to deliver the service/product, a knowledge of your competitors, who you think your customers will be and what you anticipate the business will have acheived in 1, 3 and 5 years time.