Getting in shape

While some of us emerged from full lockdown needing to shed a few pounds, businesses looking to attract lenders also need to step up their fitness regimes.

The message from the funding experts is that now is the time for companies to get in shape as they look to emerge from the Covid-19 pandemic and put the focus back on growth.

Chris Brown, principal at Lancashire accountancy firm Brown & Co, says businesses need ensure they are ready for the journey when they set off on their funding quest. He singles out three main areas lenders are particularly interested in: profitability, affordability and net assets.

He says: “Profitability is a positive sign to lenders as it shows the business is making more than it is spending. Currently lenders are checking to see if the business was profitable pre Covid-19.