Tips to prepare small businesses for financing

By | September 22, 2022

What is small business financing?

Small businesses financing refers to the methods used by aspiring or established business owners to raise funds to launch a new small business, buy an existing small business, or invest in a small firm that already exists to support ongoing or upcoming business activities.

It’s no secret that securing finance may be challenging for small businesses.

Therefore, be careful to ask yourself:

How can I maximize my chances of gaining credit approval? before approaching lenders.

Small Business Finance Software Provider in Dubai - Penieltech

To increase your grant request’s chances of approval, follow these tips

Show that your company has a consistent flow of cash

Cash is still king and a crucial indicator of the health and prospects of a company.

You can assure potential lenders that you have enough money to pay creditors, employees, and others on schedule by being able to show that you have a sufficient and/or continuous cash flow.

Be specific and demonstrate to your financier what dependable cash flow you have coming in.

Prepare financial documents such as bank statements and tax returns to demonstrate your understanding.

These records give the financier a historical picture of the operation’s success and liquidity.

When questioned about cash flow variations, explain why it decreased due to the recession or the loss of a client.

The use of accounting software enhances cash flow.

TallyPrime is accounting software that makes it simple and efficient to shift stock, potentially enhancing cash flow.

Additionally, having access to informative reports instantly can help you make sure-footed judgments and better plan the expansion of your company.

Retain a manageable level of debt

The quantity of debt shown on your balance sheet is known as your debt load.

You must be able to show that you can manage both your existing debt obligations and the additional debt repayments that your proposed funding will require.

Be prepared to show how taking on more debt will benefit your company if you want to expand it.

Project the additional revenue generated from the extra liquidity.

For the financier, a crucial piece of information is how the loan funds will be used.

Maintain a good payment record

Moreover, The history of payments made by a company is one of the most crucial aspects that every financier considers.

A financier wants proof that a company has a history of timely loan repayment.

It’s possible that a financier ordered a credit report on your company from a third party.

To ensure the report is correct, request to see it.

The report might not mention your important business partners and other lenders who may attest to your reliable payment history and serve as strong references.

Provide these references as evidence, and make sure to include the contact details of the individual you work with at your bank, supplier, etc.

You can now manage payment schedules and receive payments more quickly with the help of quick and easy accounting tools.

Show your business judgment

Lenders in the future want to know that you have a strategy in place to deal with any obstacles that might arise.

Lenders are also curious to check if you have the management in place to go beyond any challenges that may stand in your way.

Have a business strategy that you can present to financiers, if at all possible.

The business plan should include a projection for your company’s performance with at least two scenarios:

how you anticipate your company will fare without finance and how it will fare with it.

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All you can do is use accounting software for financial management

TallyPrime

TallyPrime is accounting software that supports VAT and aids in managing your finances by maintaining your balance sheet and tax return.

Tally is accounting software that helps companies report, store, and analyze their financial data.

Accounting software, with its automated capacity, makes it simple to capture and generate pertinent information from data, whether there are a hundred or thousands of transactions.

The elimination of manual errors speeds up, streamlines, and improves accounting.

As all the information is in one place, there are fewer business expenses, fewer errors, and more time saved.

Accounting software enables quick access to financial data when required and provides access to in-depth reports that aid in financial decision-making.

TallyPrime assists with accounting as well as payroll management, invoicing, and inventory management.

TallyPrime is distributed by Penieltech in the UAE.

With extensive experience implementing business solutions inside the Tally framework, Peniel Technology is a well-known company serving clients worldwide.

By bringing a superior grasp of the business processes to the table, we significantly increase the productivity of our customers’ businesses with the aid of Tally Software, UAE.

Penieltech has two subscription options TallyPrime Gold and Silver.

TallyPrime Gold

With Tally Prime Gold, you may connect an unlimited number of PCs to a local area network.

The only difference between the Gold and Silver editions in terms of features and functionality is the ability for multiple users to operate simultaneously.

Tally Prime Gold has new features that provide data security, remote access, and on-demand data synchronization.

And also flexibility to match your business procedures.

TallyPrime silver

One user is intended for Tally Prime Silver.

This edition includes Tally.NET and services like remote access in addition to all the features and capabilities.

Except for running on a single system at a time, both versions are identical in terms of features and functionalities.

In addition to subscription services, Penieltech offers highly customizable software that is simple to adapt to your company’s needs.

QuickBooks

QuickBooks is an additional piece of accounting software.

It is a powerful accounting tool for startups and growing businesses.

One of the top accounting and bookkeeping applications, QuickBooks, is favored by many businesses.

Using QuickBooks, the accounting and bookkeeping process is simple and real-time.

It is a versatile piece of software that might satisfy your needs in terms of accounting.

This can be time-consuming and frustrating, especially if you have a busy schedule and a lot of data to enter.

This program is used by thousands of professionals, including small business owners, independent bookkeepers, and huge enterprises.

Its main targets are small and medium-sized businesses, as well as independent contractors.

Additionally, QuickBooks is available internationally and has offices all over the world.

ERP Accounting software

Last but not least software for accounting is ERP.

Along with other tools, ERP offers accounting software in Dubai for small businesses.

This software makes bookkeeping simple. ERP financial software accounting dashboards provide a quick view of all key performance indicators.

With the help of customizable accounting dimensions and dashboards, you can now analyze every aspect of your growing business in one place.

Additionally, ERP software offers Billing and invoicing, journals, payments, multi-currency invoicing, banking, and customization features.