What happens in a business finance consultation?

A business finance consultation is a conversation with a commercial finance broker to establish what funding your business needs, what it can afford and which lenders and products are likely to suit. It is for owners and directors who know they need finance but are not sure which type, or which lender, fits. At Smart Funding Solutions the consultation is where we learn enough about your business to decide which lenders on our panel to approach, and which to avoid.

We are a commercial finance broker, not a lender, and we do not give investment, pension or personal wealth advice. For those, speak to a regulated financial adviser.

01What happens in a business finance consultation, step by step

1. Understanding what you need. We start with the purpose of the funding: working capital, a tax bill, equipment, stock, refurbishment, an acquisition or refinancing existing debt. We ask how much you need, when you need it and how you expect to repay it. The purpose shapes which products are suitable.
2. Gathering information about your business. Expect questions about your trading history and legal structure, turnover and profitability, existing borrowing and any arrears, assets such as property, equipment or unpaid invoices, and business and director credit history.
3. Documents. Depending on the product, we may ask for recent business bank statements, filed accounts, management accounts, an aged debtor list, VAT returns, equipment quotes or a business plan. Our guide to the documents lenders need explains each.
4. Explaining your options. We explain which types of finance fit your situation and why, with the main trade-offs: cost, term, repayment frequency, security and personal guarantees.
5. Agreeing how we work. Before we approach any lenders, we explain how we are paid. It is free to enquire; any broker fee is disclosed separately before you proceed. Lenders typically pay us a commission; you can ask us about it in writing.
6. Approaching lenders. With your consent, we present your case to suitable lenders on our panel of 300+. We tell you before any hard credit search is run.
7. Reviewing offers. We help you compare offers on total cost, fees, term, early repayment terms and security. The lender makes the final decision, and you are never obliged to accept an offer.
8. Completion and afterwards. Once you accept, the lender issues documents to sign and releases funds. Decisions can come within a few working days once a lender has everything it needs, though complex or secured cases take longer. We can review your position later if your needs change.

Be open about any problems, such as arrears, CCJs or a declined application elsewhere. Lenders will find them anyway, and knowing upfront helps us approach the right lenders first.

02What we are trying to work out

Behind the questions, a broker is building the same picture a lender's underwriter will build later: whether the business can afford the repayments, how reliable its income is, what security is available and how the directors have handled credit before. Our guide to how lenders assess business loan applications explains those checks in detail. Getting that picture right at the consultation stage means your case is presented well the first time and goes only to lenders likely to consider it.

03How to prepare for a finance consultation

04Questions to ask a finance broker

• How are you paid, and will I pay a fee?
• How many lenders will you approach, and will each search my credit file?
• What is the total amount I will repay?
• Are there early repayment charges?
• Will I need to give a personal guarantee or security?

Our article on what a business loan broker does covers the benefits of using one in more detail. When you are ready, you can arrange a confidential discussion with our team.