When you are ready to take out a business loan, you should know that there are a number of individuals behind the scenes who handle your loan. The loan officers and advisors that you meet during the initial stages of applying for your business loan typically have very little to do with the loan approval process in the UK. It is a good idea to know who else gets to take a look at your personal information and how they affect the business loan approval process.

The Loan Officer

It is the job of the loan officer to assess your ability to repay the loan based on your credit history, business idea and preparation for the meeting. If you do not impress the loan officer with the information you bring to the meeting, they may give a low opinion of your business idea that can affect your chances for business loan approval.

They also handle calculations on financial performance ratios and projected profits by comparing your idea to similar businesses that already exist. When you meet with the loan officer, you will want to have a well prepared presentation that includes a business plan, financial statements and projections.

The loan officer can be a real ally in some cases and can make the case for your approval. While they have little say over loan matters, the loan officers can tell you:

• About the business loan offered
• The likelihood of your approval, within reason
• Loan terms

When applying for a business loan, it is a good idea to go to the lending company’s branch office well prepared. The first person you see may be the one with authority to approve or disapprove your loan application. If not, he may have the authority to forward his opinion that may affect your loan application approval. It is advisable to gather all the required documents beforehand so they are readily available when asked for at the branch office. You should also thoroughly understand your proposal and its financial aspect so you can answer any questions easily.

Committees

Depending on the size of the business loan you are requesting, the decision to approve or deny your loan may be up to a small committee of high level members of the bank. For large loans, the board of directors of the bank may need to approve it.

Loan committees do not always make the approval or denial decision for loans. Sometimes they simply give their opinion on whether the loan should be approved for the approval officer. Depending upon the lending institution, they may take into consideration the loan officer’s opinion that he had formed during the initial interview. The authority of the committee is decided by the lender’s organizational structure.

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Related Articles:

• Basis of UK Business Loans
• Repayment of UK Business Loans
• Benefits of Acquiring a UK Business Loan
• How to Apply for UK Business Loans