Applying for finance

Any lender will probably want to see your business plan and financial projections. By preparing to borrow finance, regardless of the source, a useful acronym to remember what the lender will be considering is CAMPARI.

• Character – Are you of good character, would you lend money to yourself?
• Ability – Do you have the capability to run and mange the proposed business?
• Margin – What is the interest rate?
• Purpose – What is the finance being used for?
• Amount – How much will be required. Is this figure realistic?
• Repayment – When will repayment be made?
• Insurance – How will the funds be recovered if you don’t make the payments?

A lender is generally looking to generate a return from the provided finance. Finance should be viewed as a commodity and, as with all commodities, it is important to negotiate the best terms and price possible for this commodity.