There are many successful small businesses that still struggle to access affordable financing. From a lender’s point of view, the current state of your business is just as important as your history with the business. You should always use best practices to run your business. Here are some tips, from your truly, Fincue in Australia,  to help you become a better borrower today or improve your chances of getting a loan in the future.

1. Keep your finances in order

Keeping orderly financial records is crucial to getting a business loan. Lenders generally require two to three years of financial records. This includes profit and loss records, balance sheets, and cash flow records. All of this is used to analyze the financial status of your business and forecast your ability to pay in the future. Keep your financial records in order: buy accounting software online and hire a professional accountant. Although it may seem like an unnecessary cost in the short term, not doing it can cost you more in the long term.

2. Manage cash flow

Typically your lender will ask you for your monthly account statements to see your average cash balance and make sure you don’t have negative days on your account. With this they want to make sure that you can manage your cash flow efficiently and also have something extra to cover possible obstacles along the way. Also, you need to show that you can predict short-term cash flow. Lenders not only want to see history, but also to forecast future cash flows. A solid record and a good forecast show lenders that you fully understand your business cash flows. It also shows them that you can clearly identify the cash you can or cannot handle.

3. Maintain a strong relationship with your lender

If you have a good relationship with your creditors, they can become your best allies. The key to having a strong relationship with your creditors is staying in contact with them even when you don’t need them. If you have already obtained a loan, provide your lender with regular reports on the progress of your business. This allows you to alert them to the possibility of difficult days and guarantee their support then. Even if you don’t need a loan right now, it’s always wise to start building a relationship with your lender as soon as possible: so they can advise you on getting a loan in the future. If you don’t really know where to start to create a relationship with your banker, follow these three simple tips .

The irony of the credit world is that financing is easier to get when you don’t need it. Be sure to follow these and other practices today for more opportunities to grow your business in the future. And speak with us directly as Fincue for help in getting loan of any sort you want, be it business, personal, home or any other type of loans. We, Fincue, will help you get a broker that get the loan for you with good conditions.