Don’t Make These Mistakes When Applying for Business Finance
Applying for business finance can be a major step towards growth — whether you’re just starting out or looking to scale. But many business owners find that their application hits a dead end, not because their business isn’t viable, but because of avoidable mistakes made during the process.
At Let’s Do Business Finance, we’ve supported thousands of entrepreneurs and growing businesses through Start Up Loans, growth funding, and tailored finance options. Along the way, we’ve seen some common pitfalls that can make or break an application. Here’s how to avoid them.
1. Not Knowing How Much You Actually Need
Many applicants start with a vague idea of how much funding they want — often rounding up to a “safe” number. But lenders want to see a clear, realistic figure supported by a breakdown of costs, showing how much you need, what you need it for, and how your plan can be a success.
Tip: Work out exactly what you need the finance for — whether it’s equipment, marketing, working capital, or expansion — and prepare a simple cost plan. This not only strengthens your case but shows you’re a thoughtful and responsible borrower.
2. Poor or Incomplete Business Plans
Your business plan is your chance to show the lender that you’ve thought things through. An incomplete plan is one of the biggest reasons finance applications get rejected – so make sure you include a clear plan and direction for your business, with financial forecasts, research about your target marketing and outline how the funding will help you to reach your goals.
Make sure your business plan is clear and easy to understand – putting your best foot forward for your business idea, and showing your lender how you’re going to make it happen!
4. Not doing your own research on available finance types
Not all funding is created equal. For instance, a Start Up Loan is ideal for new businesses with less than 36 months of trading, while a Growth Guarantee Scheme loan or Community ENABLE Fund facility might suit established businesses looking borrow more to expand.
Tip: Research your options or speak to our team at Let’s Do Business Finance – the right finance product depends on your business stage, purpose, and repayment ability. Our team can help identify what’s most suitable for your situation.
How We’re Different from High Street Lenders
Unlike many high street banks and mainstream lenders, Let’s Do Business Finance takes a more personal and holistic approach to business lending. We don’t just look at the numbers — we look at the people, the story, and the potential behind the business.
This makes a real difference for entrepreneurs who may have been turned down elsewhere, especially those in niche industries, early-stage ventures, or businesses without significant assets. We take the time to understand your business model, your goals, and your growth potential, so we can offer finance solutions that work for you — not just your balance sheet.
5. Ignoring Your Cash Flow
Lenders will look closely at how you manage income and expenses — and how additional finance will fit into that picture. Your cash flows and forecasts help by showing your lender the viability of your business. By showing a clear understanding of the basic financials of your business, from a forecast to your trading position and market research, you can show your lender that you can manage your income and expenses and how additional finance might fit into that picture.
Tip: Prepare a 12-month cash flow forecast that shows how loan repayments will be covered. This helps demonstrate that your business can sustain borrowing without strain.
6. Rushing the Application
When business owners are eager to secure funding quickly, they sometimes skip over key details — missing paperwork, incorrect figures, or inconsistent information can all cause delays or rejections.
Tip: Double-check everything before submitting. Make sure your documents align (for example, that figures in your business plan match those in your cash flow forecast). A complete and accurate application saves time and increases your chances of approval.
7. Not Asking for Help
Don’t be afraid to ask questions and get feedback. Many entrepreneurs try to navigate the finance process alone — but professional guidance can make all the difference. From understanding eligibility to preparing your financials, getting the right advice can turn a “maybe” into a “yes”.
Tip: At Let’s Do Business Finance, our team works with businesses across the South and East of England to make finance more accessible. Whether you’re applying for a Start Up Loan or growth funding, we’ll guide you through the process every step of the way. We even offer free resources, from business plan and cashflow forecast templates to marketing strategies and new business checklists to help new businesses get off the ground!
Ready to Get It Right?
Avoiding these common mistakes can make your finance journey smoother, faster, and more successful. Whether you’re just starting out or scaling up, Let’s Do Business Finance can help you find the right solution to move your business forward.
