Five ways to secure the best loan for your business

1. Make the most of capital investment

As your business grows, it starts to acquire capital - either from other investors or from money that you've put into the business yourself.

Capitalise on this - investors will be more confident if you've raised money from others or have invested your own money into your new venture.

2. Show a strong cash flow

Once your business has been trading for a year, you can show potential investors your cash flow when applying for a business loan.

Banks and building societies will want to see evidence of a strong cash flow, as it shows your business can meet loan repayments.

Create a three-year cash flow forecast - how you think your business will perform over the next 36 months - to convince a lender that your business can repay the loan.

3. Show your business' collateral

While unsecured loans are preferable for a small business, they're usually limited to lower loan amounts than secured loans.

Unsecured loans - such as the ability to borrow up to £25,000 from Start Up Loans - are great for start up businesses looking to get started or in their earlier years of trading.

Some lenders might be unwilling to offer a secured loan.

If so, it's possible to offer up collateral to secure a loan against, such as business premises if owned by you, or assets such as plant machinery, which may make a lender willing to offer a secured loan.