Business lending hints and tips

Get the loan you deserve

Before we make a loan, we need to be sure the borrower is able to pay it back. You can help us make the right decision by providing all the documents that help us understand your business:

• Up-to-date trading accounts - balance sheet and profit and loss account with forecasts for the next 12 months
• Bank statements if you’re looking to transfer your account from another bank
• A personal budget planner, to assess the level of withdrawals you’ll need to make from your business
• A personal asset statement as a guide to the people behind the business - this will help us when assessing guarantees 
• Make sure you include all costs, for example, if you need help with a vehicle purchase, have you allowed for insurance and road tax?
• A comprehensive business plan
• A cash flow forecast

We always consider past behaviour when assessing new loan requests, so manage your finances responsibly today and you’ll be glad of it tomorrow.

• Talk to us first with any financial challenges you have, this gives us the greatest opportunity to help you
• Be mindful of your overdraft:

1. Don’t issue cheques if your funds are insufficient
2. Always wait for cheques to clear before you draw against them 
3. Ask for an increased overdraft, don't go over your current limit and incur fees 

• Make sure that all business income is paid into your business bank account
• Ensure that all debt repayments - including lease / HP finance payments - are met on time

1. If you’re unable to make a payment, contact us or the lender straight away
2. There is more we can do to help before you miss a payment than after 

Look after your personal account, this may improve your ability to borrow as a business.

• Set up a standing order from your business account to cover your monthly personal bills.
• Make sure that you keep within your personal overdraft facility.

If there’s Adverse Credit Data registered against you, this will restrict our ability to lend to you - but there’s always something you can do.

• Approach a Credit Reference Agency, such as Equifax or Experian, and ask for a copy of your credit history.
• Arrange a repayment programme with your creditor.
• Once you’ve repaid the debt, request a copy of the Notice of Satisfaction and ask for your credit history be updated.

By providing security to cover your borrowing, we’re able to lend at lower interest rates. We accept the following types of security:

• Property - residential or commercial
• A life policy with surrender value (minimum of £10,000)
• Cash
• Stocks and shares
• Just remember, the security we need will vary depending on the borrowing requested

Whether it’s a loan or overdraft, we’re here to help you find the best option for the needs of your business.

If you're buying an asset for your business like a vehicle, this should be funded with a business loan rather than an overdraft 

However, if you only need extra funds for a short time then an overdraft could be a good solution.

To apply for an overdraft, increase your limit, or take out a loan, please call your Barclays Business Team on 0845 605 2345¹

We recognise that some businesses are questioning the cost of lending. So, we'd like to take this opportunity to show you how lending is priced