How to help your clients prepare for growth in 2022

January will be a busy month for you and your team in terms of preparing your clients’ accounts for the tax deadline. So, before waving goodbye to what’s been a rollercoaster of a year, why not take some time to help your clients prepare for growth in 2022?

If you haven’t already, ask your clients to start thinking about their goals. Goals can be incredibly powerful in that they provide us with long-term vision and short-term motivation.
2022 could be the year of growth for many businesses. Some of your clients might be looking to hire more employees, expand their product ranges, upgrade an asset, enter a new market, launch a rebrand or move to a larger premises, for instance.

Whatever the goal, it is important to plan how they will achieve their goals and the right type of business funding can help turn it into a reality.

In the not-so-distant past it could take a business weeks, if not months, to secure funding. Business owners and their accountants would have to jump through a number of hoops and wait for long periods of time before getting a response from the bank.

Fortunately, new flexible lenders and fintech platforms like Funding Options are breaking down some of the traditional barriers to getting a business loan and making the lending market more inclusive.
Compared with some of the traditional banks, these lenders have more of an appetite to lend to businesses based on their ambition, not just their experience, credit score and longevity.

Funding eligibility

With so many new lenders on the market, eligibility criteria can vary significantly. Eligibility can also depend on the type of finance your client needs. For example, an asset finance loan needs to be used to purchase an asset, such as kitchen equipment or a vehicle.

On the other hand, if your client wants to take out a merchant cash advance, the lender may want to know how many transactions they process each day, week and month.

In terms of trading history, some lenders will expect your client to have been active and profitable for 1-2 years.

Others, however, will accept 6+ months.

Lenders are also likely to be on the lookout for any late payments or CCJs associated with your clients’ company and may also take note of their personal credit history.

Depending on the lender and type of funding, your client may be required to provide a personal guarantee or offer a company asset, such as property or stock, as security.

The paperwork

Lenders can’t make a decision without correct, up-to-date information. Failing to provide this could result in delays, so it’s worth discussing with your client ahead of time.

Lenders commonly need two years of accounts (if available), up to date management accounts and bank statements. Some lenders don't even require anything for lower values.

Of course, if you use cloud accounting software you can access some of the above documentation on demand and formulate growth trends/forecasts on behalf of your client.
Using cloud accounting software that facilitates the flow of income and expenditure data directly from your client’s business account can also speed up the process and provide the lender with a higher degree of confidence in the quality of information they receive.

Join Connect today

If you find yourself with a couple of minutes to spare this December, use it to create a Funding Options Connect account. You can use the platform to help find your clients the funding they need to set their growth plans into action in 2022.

Our award-winning technology searches the market to accurately and quickly match business’ needs with the right lender and finance options. It covers asset finance, merchant cash advances, revolving credit facilities, property finance, credit cards and more.

Once you’ve registered, you can refer your client using your personalised link, then manage and track your referrals through a dedicated dashboard.

Your client doesn’t have to wait until next year to secure business funding.

Our current record from initial enquiry to funds in the bank is 18 minutes, and our record from enquiry to approval stands at 20 seconds. Most lenders reply within 24 hours and as long as you have all the paperwork ready, it’s possible to secure finance within a day or two.

JOIN CONNECT TODAY

Thomas Boyd is head of commercial at Funding Options.