Funding applications are not assessed on numbers alone.

Financial information is important, but funders will often look at the wider picture behind the business. They may want to understand who is involved, how the business is managed, what the plan is and whether the people behind the proposal appear able to deliver it.

This is where people, planning and partnerships matter.

A business may have a strong opportunity in front of it, but a funder will usually want to know how realistic the plan is. That can include looking at the experience of the management team, the quality of the information provided, the strength of internal systems and whether the business has access to appropriate professional support.

For many SMEs, the owner or management team is central to the business. Funders may therefore want to understand their track record, sector knowledge, financial awareness and ability to manage change. If the business is seeking funding for growth, investment or a new project, the funder may also consider whether the team has the capacity and experience to deliver the plan.

Planning is equally important.

A funding request is usually stronger when it is linked to a clear business purpose, realistic assumptions and a credible repayment route. That does not mean every business needs a lengthy business plan, but it should be able to explain what it is trying to achieve, what the funding will be used for and what the expected outcome is.

Partnerships can also make a difference.

Accountants, solicitors, brokers, business advisers and other professional partners can all play a useful role in helping businesses prepare. They may help gather information, test assumptions, explain financial performance, review documents or identify issues before a funder asks questions.

This is especially useful where a funding request involves property, growth plans, restructuring, new contracts, grant support, tax issues or more complex trading circumstances.

A well-supported business will often be better placed to present its case clearly and respond to funder questions efficiently.

This does not mean a business needs a large advisory team. It does mean that preparation is usually stronger when the right people are involved at the right stage.

The takeaway

Funders do not only look at what a business wants to borrow. They also consider the people, plan and support behind the request. Strong preparation often comes from having the right information, the right explanation and the right people around the table.