How can UK SMEs plan and prepare for growth in 2022?

In spite of ongoing uncertainty, many businesses are looking to grow or scale next year, and perhaps yours is one of them. Whether you’re planning to hire more staff, create a new product range or expand your services, test out a new market or invest in some new machinery, the right type of business funding can help you turn your goals into reality.

Gone are the days of having to spend days searching for the right paperwork to apply for business finance. The days of having to wait weeks to find out if you’re eligible for business funding are long gone too. Fintech companies like Funding Options are breaking down barriers to finance and making the business funding market more inclusive for all. 

Am I eligible for business finance?

There are lots of different types of business finance out there today. The type of loan or facility you opt for will depend on your business’ circumstances and what you plan to use the funds for. With so many new lenders on the market, eligibility criteria can vary significantly. Eligibility also depends on the type of finance you need. 

For instance, an asset finance loan must be used to purchase an asset, such as kitchen equipment (e.g. a coffee machine), a vehicle or any other high value item your business needs to trade and grow.

If you take customer card payments, you might be eligible for a merchant cash advance. In this instance the lender may want to know how many transactions you process each day, week or month. 

If you've only been operational for a while, don’t worry. Some lenders will expect you to have been active and profitable for one to two years, however others will accept at least six months.

Lenders are likely to be keeping an eye out for late payments or CCJs though, and may take your personal credit history into consideration too. Check out our 2022 financial resolutions guide for more information on how to set your business’ finances up for success.

Bear in mind that you may also be required to provide a personal guarantee or offer a company asset, such as property or stock, as security when you take out finance. There are some unsecured loan options out there that don’t require either, though.

What documents do I need to apply for business finance?

You’ll need to provide the lender with correct, up-to-date information and documentation so that they can make a lending decision.

Not doing so could lead to some delays, so it’s worth getting the necessary paperwork together as soon as you can. Typically, lenders will require two years of accounts (if available), up-to-date management accounts and bank statements. 

Some lenders don't even require anything for lower values!

Is your business ready for growth?

You don’t have to wait until 2022 to secure business finance. If you’re considering applying for business funding, you can use Funding Options to see what you could be eligible for today. Loans from £1000 to £20M are available and viewing your funding options won’t affect your credit score. One of the benefits of using our platform is that your business will receive expert help throughout the process, from initial enquiry to funds in the bank.

We cover a wide range of finance types, from asset finance and merchant cash advances to revolving credit facilities and more. We know that when it comes to cash flow, timing is everything. Funding Options’ record from first enquiry to money in the bank is 18 minutes (it’s 20 seconds for enquiry to approval). If you do go on to apply for finance, the majority of lenders will reply within 24 hours.