Maximise Your Funding Options: Completing Your FY24 Financials
As we move into the new year, it’s essential for businesses to focus on completing their FY24 financials accurately and efficiently. For asset finance brokers like us, this period is a crucial time to help you secure funding for all your business needs for 2025. Here are some tips to maximise your options with lenders and secure the funding you need to grow your business.
Why Accurate Financials Matter
Lenders can rely heavily on your financial statements to assess your creditworthiness and capacity to repay loans. Accurate and comprehensive financials assist us with presenting your business to one of the lenders but also increase the types of funding options available to you. Well-prepared financials can:
- Demonstrate profitability.
- Highlight strong cash flow.
- Showcase robust asset and liability management.
Key Areas to Focus On
1. Profit and Loss Statements
Ensure your profit and loss statements are detailed and categorised correctly. Lenders often look for consistent revenue streams and manageable expense ratios. Managing your P&L statement can make your business more appealing to lenders.
2. Balance Sheet Health
A strong balance sheet with manageable liabilities and healthy asset levels will assist with your application.
3. Tax Compliance
Being up-to-date with your tax obligations is important. Late filings or outstanding debts can raise can influence the decisions made by lenders. If you have any overdue obligations, work with us and your accountant to come up with a plan.
4. Director’s Guarantees and Personal Financials
Some lenders will assess the personal positions of directors. Having your personal as well as your business tax returns done will allow us to use the information if needed.
Preparing for 2025 and Beyond
1. Work with a Qualified Accountant
Collaborating with an experienced accountant will ensure your financials meet industry standards and lender requirements. Accountants can also provide valuable insights into tax planning and optimising your financial position.
2. Seek Pre-Approval
Pre-approval allows you to gauge your borrowing capacity and identify areas to improve before formally applying for funding. This step can save time and increase your chances of success.
3. Maintain a Clean Credit Record
Your credit record plays a significant role in your eligibility for funding. Monitor your credit file regularly and address any discrepancies immediately.
4. Talk to Us About Other Lenders on Our Panel
If traditional funding avenues aren’t a fit, we have great long-term relationships with lenders who often provide flexible options. These lenders consider individual circumstances and assess deals based on commercial reality, which at times in the lifestyle of a business is needed.
Common Pitfalls to Avoid
- Incomplete Financials: Submitting incomplete or inaccurate financials can delay your application and harm your credibility with lenders.
- Ignoring Cash Flow Management: Lenders value businesses with consistent cash flow, so ensure your financials highlight your ability to meet repayment obligations.
- Delaying the Process: Leaving financial preparation until the last minute can lead to missed opportunities. Start early to give yourself ample time to address any issues.
How We Can Help
At QPF, we specialise in assisting businesses like yours to navigate the funding landscape. Whether you need advice on lending capacity, selecting the right lender, or structuring your loan, our team of experienced brokers is here to help.
Maximising your funding potential starts with allowing us to work with you to get a complete understanding of your business and goals, financial information is key to this but so is speaking to one of our experience brokers and leaning on out 45+ year history of partnering with SMEs to play a small role in their success.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.