Commonly asked questions when applying for a business loan

Aspiring business owners often have several questions when applying for a loan for the first time, and that’s only natural. We asked our SMF loan officers for the most common questions they get asked by entrepreneurs and SME business owners and have provided answers to help you in the process of securing a loan to help start or grow your business.

Our top questions include:

I have a bad credit report; will that stop me from getting a loan?
Not necessarily. Send us a copy of your credit report to review, then we can let you know if you meet the eligibility criteria and advise you on next steps.

I have a low credit score; will this affect my chances of getting a loan?
We don’t assess your application based on your credit score, so it won’t affect your chances of being granted a loan.

How do I create a cashflow and a business plan?
We will send you a cashflow and business plan template to help you get started, then work with you to ensure its realistic and achievable. I If you need further assistance, you can contact your local Business Gateway, who will be happy to guide you through putting together a cashflow and a business plan.

What is the average processing time?
The standard processing time is approximately 6-8 weeks once we have received all the required information. Our team of loan officers who are based across Scotland are ready to help you with any questions you might have about the review of the application.

What happens after I’ve been granted a loan?
Your dedicated loan officer will guide you through every step of the process. Once you have received the loan, your loan officer will still be available to support you through your business growth via our aftercare/mentoring programme.

To find out more about the Scottish Microfinance Fund visit our website and get in touch.

Tagged With: business; loan; common; questions; challenges; Scotland