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Applying for a business loan

In the previous instalment of our Borrowing tookit, we highlighted how LendingCrowd can help to bridge the funding gap experienced by small businesses looking to borrow between £5,000 and £500,000. This time we look at the process of applying for a business loan with us.

The first step is to register as a borrower and then prepare the information you’ll need to support your application. Having an up-to-date business plan and projections will also help.

Once you have everything to hand, you can apply for a business loan with us in just 15 minutes.

What information will I need to provide?

  • Names, addresses and phone numbers for the business and all directors
  • How much you want to borrow and how you plan to invest these funds
  • Most recent three months’ business bank statements
  • Last two years’ full accounts
  • Management accounts to end of last completed quarter
  • VAT registration number (if applicable)
  • Legal status of business (for example, limited company, partnership, sole trader) and ownership
  • Number of years in business
  • Details of any other current borrowing, for example loans, overdrafts or factoring facilities

Writing a successful loan application

The information you provide acts as your application for credit and your pitch to your potential investors. This is your opportunity to share an engaging account of your business and how the loan would be used to fund your plans.

Make sure your application describes your business well – highlight its unique selling points and reflect your abilities and those of your management team. Remember that investors might not have lots of time and may know very little about your industry – so you can help by providing an easy-to-read introduction and reasons for investing in you.

We’ll go into more detail about the pitching process in the next addition to our Borrowing toolkit.

Adrian Innes, Head of Origination at LendingCrowd, said: “We were founded to help bridge the funding gap facing so many SMEs. Thanks to our recent £18.75 million deal with Scottish Investment Bank and NIBC, we stand ready and able to support many more borrowers who want to fund their ambitions with a fast and flexible LendingCrowd business loan.”

It’s time to take your business further. It’s time to Think Outside The Bank.

As a borrower, it’s important to remember that defaulting might lead to the debt being passed to an agency for collection. Investors need to be mindful that they’re lending to businesses so their capital is at risk. LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Article author

Gareth Mackie

Gareth Mackie

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If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Read more about the risk involved when investing and borrowing.

The company's registered office is 23 Manor Place, Edinburgh, EH3 7DX.

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