# Getting lenders on the hook Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: How to Secure Business Funding: Tips from Capitalise.com MD Meta Description: Discover the various strategies and tactics small businesses can use to secure financing, from purchase orders to card machines and solid financial projections. URL: https://financedigest.com/getting-lenders-on-the-hookhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/business-people-in-officer-1-1736844502440-compressed.jpg) **Paul Surtees**, MD and Co-founder, [Capitalise.com](http://www.capitalise.com/) **What kind of bait can secure business funding?** There are now an unprecedented number of finance options available to small businesses. Before you think I’m wrong – I appreciate that this statement is counter to the usual complaints about small firms’ access to finance – however, _supply_ is really not the issue. [The issue is _finding_ finance and being able to identify the right product for your business](https://capitalise.com/insights/sme-finance-intermediation). While we believe that aggregation ultimately holds the [key to helping businesses](https://www.financedigest.com/foot-orthotic-insoles-market-to-generate-us-5-billion-by-2026-growth-key-business-strategies.html "Foot Orthotic Insoles Market to Generate US$ 5 Billion by 2026 | Growth & Key Business Strategies") navigate the somewhat obscure funding marketplace, it’s also important to identify what different potential lenders are looking for. Whether you’re a small business owner looking for finance, or an [accountant offering counsel to an SME client](https://capitalise.com/accountants), you need to understand what will get lenders on the hook. Here are some examples of how businesses can [improve their odds to secure finance:](https://www.financedigest.com/how-finance-firms-can-unify-two-data-approaches-to-improve-both-compliance-and-security.html "How finance firms can unify two data approaches to improve both compliance and security") **Purchase orders, invoices and assets** Even if you have limited assets, a purchase order from a strong buyer gives you a [firm financial leg to stand](https://www.financedigest.com/dollar-stands-firm-while-traders-await-cpi.html "Dollar stands firm while traders await CPI") on. Purchase orders are a great first step into [Trade Finance](https://www.financedigest.com/trade-finance-the-small-brush-to-paint-the-big-picture.html "Trade Finance: The Small Brush to Paint the Big Picture"). As long as you have more than a 30 percent margin on the order in question, it can help secure finance for trade either domestically or internationally. Similarly, the invoices you send to other [businesses can also be a strong base for securing finance](https://www.financedigest.com/the-four-pillars-of-data-integrity-what-finance-businesses-need-to-know.html "The four pillars of data integrity: what finance businesses need to know"). This can be as little as a single one off invoice, or the whole sales ledger. Invoice finance can release up to 90 percent of your sales ledger and the highest [level of funding for your business](https://www.financedigest.com/ukraine-war-energy-crisis-send-german-business-sentiment-to-lowest-level-since-june-2020.html "Ukraine war, energy crisis send German business sentiment to lowest level since June 2020"). Finally, assets -whether existing or to be purchased – can provide the backbone of security for lending. The kind of assets that provide this [security come in a range of shapes and sizes](https://www.financedigest.com/embedded-security-for-internet-of-things-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2027.html "Embedded Security For Internet Of Things Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2027"), from machinery, stock and property, all the way through to a company van. The [key here is simply to understand the value](https://www.financedigest.com/automotive-navigation-solutions-market-size-and-key-trends-in-terms-of-volume-and-value.html "Automotive Navigation Solutions Market Size and Key Trends in Terms of Volume and Value") of what you have. **Card machines** For SMEs in the hospitality and [retail sectors](https://www.financedigest.com/demand-from-retail-food-and-beverages-sector-to-account-for-over-70-of-refrigerated-display-cases-sales-study.html "Demand from Retail Food and Beverages Sector to Account for over 70% of Refrigerated Display Cases Sales: Study"), such as pubs, hotels and shops, securing funding can be notoriously difficult. What a lot of these businesses don’t realise, however, is that with just four months trading, and £4,000 of revenue coming through a card machine per month, they can secure funding under the promise of future [cash flows](https://www.financedigest.com/should-your-business-reconsider-invoice-financing-top-tips-on-why-reappraising-this-method-liberates-business-cash-flow.html "Should your business reconsider invoice financing? Top tips on why reappraising this method liberates business cash flow"). This can be up to 150 percent of monthly takings and presents a useful funding [opportunity to any SME regularly using a card](https://www.financedigest.com/vive-la-france-cashless-card-opportunities.html "Vive la France: Cashless & Card Opportunities") machine. **Startups** Startups find themselves in a unique position, but it needn’t be a desperate one. Most think that without a solid revenue stream, financing is going to be an uphill struggle. In reality, a solid [business plan](https://www.financedigest.com/how-to-start-a-drop-shipping-business-plan-the-first-step-for-a-successful-online-business.html "How To Start A Drop shipping Business Plan – The First Step For A Successful Online Business") is far more important. The [really important](https://www.financedigest.com/what-is-guest-post-placement-why-it-is-really-important.html "What is Guest Post Placement? Why it is really important?") element is to ensure your financial projections are both comprehensive and achievable. That last point isn’t just crucial for startups. In fact, solid financial projections are indispensable for any [firm seeking finance](https://www.financedigest.com/prioritising-employee-wellbeing-in-finance-firms-through-learning-and-development.html "Prioritising employee wellbeing in finance firms through learning and development"), and speaking to a professional on the subject is certainly advisable. Your accountant is a great place to start, and will likely have valuable counsel about your [next steps to finance](https://www.financedigest.com/open-finance-the-next-step-for-global-digital-transformation.html "Open finance – the next step for global digital transformation"). The moral of the story is that, no matter the business, there is almost always a hook to [secure finance](https://www.financedigest.com/the-digital-finance-revolution-empowered-consumers-turn-digital-to-protect-financial-security.html "The digital finance revolution: empowered consumers turn digital to protect financial security"). The real issue comes in finding the lender that suits you. That’s where aggregation platforms like [Capitalise](http://www.capitalise.com/).com come in, by enabling SMEs to search, compare and select the most suitable finance option for them. With an ever increasing number of SME lenders, it can often feel like the waters are being muddied. Aggregation [platforms are able to clear these waters](https://www.financedigest.com/iot-platform-wells-up-south-africas-silulumanzi-water-utility-power-asset-management-savings-and-monitoring.html "IoT Platform Wells Up South Africa’s Silulumanzi Water Utility Power Asset Management Savings and Monitoring") and make funding choices more transparent, allowing you to focus on how to put the bait on the hook. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---