Preparing a Strong Application for Commercial Finance

Securing commercial finance can be a game-changer for businesses and property developers—whether you’re buying premises, funding a development, or looking to expand. But with lenders carefully reviewing applications, it’s vital to come prepared.

At Cotterell & Cotterell, we help clients submit finance applications that are not only complete but compelling. Here’s how to prepare a strong commercial finance application that gives you the best chance of success.

1. Understand What Lenders Look For

Before approving a loan, lenders want to know two things:
✅ Is your project viable?
✅ Can you repay the loan?

To answer these, they’ll assess the following:

• Your financial position – including income, liabilities, and credit history.

• Security – what asset (usually property) is being used to secure the loan.

• The strength of your exit strategy – how and when the loan will be repaid.

The clearer and more detailed your application, the easier it is for lenders to make a positive decision​.

2. Be Clear on the Type of Finance You Need

Whether you’re applying for a bridging loan, development finance, or a second charge loan, lenders will want to know:

• Why you need the funding

• How long you’ll need it for

• What your end goal is (sale, refinance, business growth etc.)

Being able to explain your funding requirements confidently shows you’re informed and lowers the perceived risk to lenders​.

3. Prepare Key Documents in Advance

Having the right documents ready will speed up the process and show that you’re well-organised. Lenders typically ask for:

• Business accounts and cash flow forecasts

• Details of the security property (valuation reports, ownership documents, planning status)

• An exit strategy (sale or refinance timeline)

• Your experience (especially for development projects or property investment)

If applying for second charge or bridging finance, expect to also provide consent from your primary lender and a breakdown of existing debt​.

4. Address Potential Risks Up Front

If there are any known risks—such as planning delays or outstanding debts—it’s better to address them honestly. Lenders appreciate transparency and may be more flexible if you demonstrate a plan to manage the risks.