Applying for a business overdraft

We love hearing the sound of a freshly submitted application drop in, because it gives us the opportunity to learn about a new business – its story, products and services and plans for the future.

At Growth Street we want the application process to be fast, simple and transparent! In order for us to turn around offers within three days, we ask for quite a bit of information from prospective clients so we can properly evaluate a company's current state and future prospects and make an evaluation of whether Growth Street can help them take the next step.

Whilst the Growth Street Credit Committee is utterly incorruptible (although they are partial to the odd Victoria Sponge), our Head of Client Development Matthew Stephens has some tips for Growth Street applicants to boost their chances:

Matthew's Top 3 Tips for a tip-top application
1. Accountancy software integration speeds up the application process

Using accountancy software has many benefits for SMEs, but one of the most significant is being able to view the company’s financial position in real time. You can also generate instant reports for specific areas of the business that management may be concerned with.

You need to be using accountancy software in order to apply for a Growth Street overdraft as this allows us to streamline the application review process meaning that you can get a decision – and your capital – sooner. Our direct integration with Xero also reduces the amount of manual administration when tracking loan covenants, saving you time and giving you piece of mind.

2. Have a 12 month cashflow forecast in place

As part of our application process, we ask potential customers to supply a 12 month cashflow forecast to give us an accurate sense of the flow of cash in and out of your business over the course of the year. Given that poor cashflow management is the most common cause of business failure, it's important to have one in place to ensure your business has enough cash on hand on a month-by-month basis and to put contingency plans in place where necessary.

If you haven't compiled one before, this template may come in handy.

3. Have monthly management accounts

Management accounts help managers and owners make effective decisions on the core areas of their business and producing monthly not quarterly versions enables you to be quick to respond to challenges and opportunities. The four key benefits of producing monthly accounts are:

  • A potential reduction in tax liabilities - as a result of being aware of your estimated pre-tax profit before the year end (you may decide to make capital purchases, for instance)
  • The confidence to throttle price/volume – monthly management accounts give you the flexibility to alter prices or production volume in response to consumer demand
  • Reduced costs – management accounts provide good visibility on overheads and business costs
  • Control cashflow – essential to understand the cash cycle of the business

It takes just 15 minutes to apply for a Growth Street overdraft of between £50,000 and £150,000. If you have any questions please view our FAQs or drop us a line.

Written on in Borrowing