Starting a business can be daunting. If you're wondering do I need a loan to start a business? Or how can I get my business ready for lending? Here are a few pointers that could help.

Funding a new business can be difficult and unless you’ve got private funds or savings, you will probably need a loan to get your business off the ground.

Getting the right financial support could be the difference between capitalising on a great idea and missing out on a great opportunity.

The same will be true if you need a loan to buy a business or if you’re planning to expand.

Whatever you need the loan for, it's crucial to get your business ready for lending. You'll need a clear strategy, a good knowledge of your finances, and the right guidance.

Do you need to know how to set up a limited company?

According to the British Business Bank, nearly half of UK SMEs needed external finance last year, with many founders turning to start up business loans.

But business start up loans are more than just a cash injection; they're also vote of confidence in your business model. So, you really want to nail that application first time.

You need to be prepared, but that’s not just all about paperwork.

To secure a new business loan, you'll need to express clearly how you'll align your business goals with your funding strategy.

To get ready to apply for your new business loan, start by defining the reason you need to borrow:

• Are you launching a new product?
• Entering a new market?
• Hiring new staff?

Defining these goals will shape which start up business loan could be right for you.

Equally important is understanding your financial position, so make sure you:

• Review your income statements, cash flow, and liabilities.
• Understand your cost structure.
• Closely scrutinise your personal income statements, cash flow, and existing debts to determine how much you can borrow and what repayment terms are realistic.

At this stage, creating a simple one-page plan for your business could really help.

Lenders want to see more than ambition—they want evidence. That means preparing:

• Financial statements and forecasts: Profit and loss accounts, balance sheets, and cash flow projections.
• A compelling business plan: One that clearly outlines your strategy, market opportunity, and growth potential. For more detailed guidance on how to write a business plan that’ll set your business up for success, visit our Businesss planning tips page.
• Compliance documentation: Ensuring your business meets all legal and regulatory requirements.

From traditional business start-up loans to flexible credit lines, there are a range of funding solutions tailored to your business’s unique needs.

Whether you’re looking for a secured loan, an overdraft facility, or an unsecured business loan for a start up, it’s important to choose the products that align with your financial strategy and growth ambitions.

Securing that new business loan isn’t just about the application - crucially, it’s also about putting yourself in a strong position. Even if you want the loan to buy a business.

You can strengthen your position by:

• Improving your credit score: Regularly review your report, correct errors, and reduce outstanding debts.
• Building a relationship with your bank: Understanding lending criteria and engaging with your bank can make a difference.
• Presenting a robust business plan: Show lenders you’re serious, strategic, and prepared for success.

Hopefully this has helped you to think ‘I can now get my business ready for lending’! 

At NatWest, we believe that lending is a partnership. By helping you get your business ready for lending, we’re not just proving capital – we’re investing in your vision.

Find out how our business lending options could help you.