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Funding Application Guide

Funding Application Guide

Applying for business funding can feel like an extremely time-consuming and complex process. In fact, for many small business owners, it’s a painstaking process to start — especially when you’re a first-timer to funding.

At 365 Business Finance, we make it our goal to remove the hassle and help you grow your business without the need to make you go through multiple, complicated funding applications.

Read on to discover how to complete an application form and what it’s like working with one of our allocated relationship managers.

 

Funding for Business Growth: The Role of 365 Business Finance's Sales Team

Our sales team go above and beyond, and act as relationship managers. 

We strive to deliver full support throughout the entire business funding process, and actively encourage applicants to get in touch with questions or uncertainties. Our knowledgeable team of experts are on-hand to offer strategic ideas and practical advice when you need it most.

Your assigned relationship manager is the middle-person between you as the applicant and the 365 Business Finance underwriting team (who are responsible for the background work and due diligence to look into your business).

As a seasoned financial professional, our experienced advisors are well-versed in the business lending process and all the documentation needed for a successful application.

We’ve seen the benefits of a close partnership with a trusted advisor time and time again. Not only will your relationship manager help you save time with the application, but they’ll make the entire funding process simple and straightforward by ensuring every phone call and email is responded to efficiently and in a timely manner.

 

How our Business Funding Works

Unlike a traditional bank loan, there are no interest rates or fixed monthly payments to worry about. Instead, repayments are taken from a small percentage of your future debit and credit card payments.

This means repayments mirror the ups and downs of your business, easing financial stress — when you have a quiet period, you simply repay less, and when business picks up, you repay more.

Our business funding is ideal for SMEs that process payments through a card machine (PDQ) and/or online payment system. There’s no APR as there is no fixed fee, just one all-inclusive cost that’s agreed on at the start, which never changes.

Eligibility 

Finding out if you’re eligible for our business cash advances is simple. You must:

- Be trading for a minimum of 6 - 12 months.

- Have an average monthly credit and debit card turnover of at least £5,000.

- Process payments through a card machine (PDQ) and/or online payment system.

- Be based in the UK.

No Hard Credit Checks

Times have been tough recently, and maybe your business has had a bumpy ride financially. Alternatively, maybe you’re just starting out in the business world and don’t have enough credit history.

At 365 Business Finance, we only conduct a soft credit check which does not affect your credit score. From this, we’ll be able to tell you your chance of being accepted without running a hard check that will show on your credit report.

What to do if you have a Bad Credit Score, Poor Credit History or have a CCJ?

Having a bad credit score, poor credit history, or a CCJ (County Court Judgment) isn’t a roadblock to receiving funding with us. When assessing an applicant, we look at your business’ recent debit and credit card transactions, so we don't just look at your credit score, but your business as a whole when making a funding decision. 

 


What's Involved in the Application Process?

To start the application, we'll ask you to apply for a quote on our website, where you’ll need to provide information including your business name, industry, contact details and information about your average monthly card sales.

After submitting these details, you can expect the following from our funding application process:

Stage 1

- Your assigned relationship manager will contact you over the phone (or by email if they can't get through to you on the phone) to explain our product in detail and answer any of your questions. 

- After the phone call or email, you'll need to submit 12 x months of your business card sales and information about your current card processor/provider.

- We'll also ask you to complete our Online Fact Find Form, which you'll receive a link to in an email. 

Stage 2

If our Underwriting team has given your application preliminary approval, you’ll move onto Stage 2 of the business funding application process. This step usually requires further documentation, including:

- Proof of ID (passport or driver's licence). 

- 3 x months of business bank statements.

- Copy of your lease agreement. 

Please note, additional documents may be requested, depending on business circumstances and terms.

Upon successful receipt of the requested documents, an agreement will be drafted and sent to you within 24 hours. Once agreements have been signed and completed, funds are deposited into your business account within 48 hours.

 

What Happens After You Receive Funding?

Once you’ve overcome the first hurdle and received business funding, you might be thinking… what next?

Renewal Rates

Once your advance is repaid, we make it easy for you to reapply for further funds. Since our underwriting team has already conducted the necessary background checks on your business, the process the second time around is even simpler, and funds can be in your account in less than 48 hours.

With a 70% renewal rate, our priority is to always be transparent in our dealings with you, which is why our fee is clearly disclosed upfront and there aren’t ever any hidden costs.

Changing Card Terminals

To offer as much flexibility as possible, we can work with most card terminal providers, with the exception of PayPal terminals. If you decide to take out funding with us, and you want to change your card terminal, it’s essential to notify your relationship manager so that they can keep their records and data up-to-date.

Flexible Repayments That Mirror Your Card Sales

As part of our service, your relationship manager will inform you of a fixed percentage of your credit and debit card sales to repay the merchant cash advance.

The pre-agreed percentage is automatically deducted from your daily transactions at the point of sale. You will receive the balance of your funds as normal into your regular bank account. We give you one less thing to worry about by automating the process, so there’s no change to the time it takes for you to receive your money.

The daily amount deducted then reduces the balance outstanding on the business cash advance, and collections stop automatically once the cash advance has been repaid in full. Sell to your customers on your credit and debit card terminals with ease.

 

(Example of how repayments follow your cash flow.) 

 

Planning for Tough Times: Why our Funding is Resilient in Economic Crises

Our repayment structure is designed to follow the ebb and flow of your business so that your cash flow isn’t negatively impacted by factors outside of your control.

Given the importance of cash flow in times like the pandemic, we’ve seen how important it is for SMEs to strategically plan ahead to manage outside risk and business continuity preparation. To do this successfully, you’ll need to take a full ecosystem into account from one end of the supply chain to your end-customer.

The approaches you take to managing cash flow today will have implications for your business in the future to come — no matter how uncertain times become. To make sure your financing remains viable, revisit your variable costs and outgoings regularly and consider the benefits of financial support like merchant cash advances.

For UK SMEs, our funding has been an ideal source of business finance throughout the pandemic because:

- There's no fixed monthly payments to worry about.  

- You only repay when customers pay you (so you don't have to stress during lockdown or uncertain periods).

- We offer quick capital, with funds deposited into your account within just a few days. Even if you have taken out government loans or grants during the pandemic, our funding is still an option to support your business. 

Our financing acts as a quick loan that immediately injects cash into your business, eradicating the long processing times of traditional bank loans, making it an ideal solution for SMEs who need a ‘pick-me-up’ in tough times.