Businesses 'must understand the market' when applying for loans

Date: 10/06/2011

Firms looking for money to grow their business and buy new 0800 numbers must ensure they understand the market in which they operate.

This is according to comments made by chief executive of the British Bankers' Association Angela Knight, who discussed loans on the BBC Wake Up to Money podcast.

She said companies need to be aware of how "vibrant" their industry is and whether or not it is performing well.

"Get your numbers together so that it is realistic - what your costs are and your expected return," Ms Knight advised.

She said that having the correct information and numbers to hand can make a difference when banks are making a decision about whether to approve an application.

These tips come after Dr Stephen Bence, spokesman for database UK Funders, said firms should not rely solely on government grants and banks when looking for funding.

Private sector business angels and venture capital funds can also be good sources of cash, he explained.