The Raglan Suite

A Beginner’s Guide To Raising Business Finance For  Property Entrepreneurs

25 October 2022
Categories: Uncategorised
property entrepreneurs

Most small businesses don’t have enough money to fulfil all their dreams. And property entrepreneurs are no different! 

Many new business owners use their own money to get their company off the ground, and that’s a feat in itself. But, with big ideas for the future and new properties in mind, growing your business often means needing extra capital. And, unless you’re lucky enough to have it lying around in a bank account, finding more money can feel quite difficult.

The good news is that you don’t have to fund all your projects yourself – there is finance available that can work alongside your money and help you to grow quicker and more profitably. 

The Question Is, How Do You Access It? 

As experts in small business finance, over the last 29 years, we’ve been helping property entrepreneurs access the money they need to succeed. 

In this blog, we’re going to help you understand how small business finance works in the property sector, and how you can access more finance solutions. 

Helping you stretch your money further and grow your business faster. 

First, A Few Myths…


It’s a common misconception that the only way to raise finance in the property sector is through mortgages or using your property as collateral. 

This simply isn’t true. 

There are lenders out there offering finance that doesn’t require your property as security. 

In fact, there are some really creative ways to raise finance as a property entrepreneur, from finance for landlord furniture, money to refurbish a property, funding to take on more Rent2Rent properties and even cash for start-up businesses! 

We are here to help you access that hard-to-find money so you can continue to grow… 

What Is Small Business Finance And Why Do I Need It?

Small business finance is pretty much what it says on the tin. It’s borrowing money to help your business to develop.  

Many entrepreneurs shy away from borrowing money – believing that all debt is bad debt. But this quite simply isn’t true. 

Acquiring more capital for your property business unlocks the potential for its growth. And it’s a smart move. 


Because while your own funds might have got you this far, external funding helps you to continue building your property venture through to profitability. The cash influx you obtain might bag you another property or can be put towards refurbishing or furnishing your property to increase its potential.

Using other people’s money in your business releases your risk capital to take on more opportunities and grow.

How Does Finance For Property Entrepreneurs Work?


Like most things, accessing finance to grow your property business can be easy – when you know how. 

In this blog, we’ll help you understand the process for accessing business finance that does not require property mortgages as security and walk you through the bank loan route so that you know what to expect from this next big step. 

If you choose to work with Culbone Finance, we work with our lending partners to try to make it as easy as possible for you to access business finance.  

We have a unique relationship with our lending partners that can allow you to access finance packages not available on the mainstream market. In some cases, we can even create a totally bespoke finance arrangement to suit your needs.

What Does A Lender Look For?

If you can provide what comes next, you will give yourself an excellent chance of raising small business finance…

1 – Personal Credit History

credit history

One of the key things lenders will be interested to learn about you is how you handle your relationship with money. They want to know what you believe about money as well as who you are and where you live. 

To do this, they use traditional credit checking. They don’t look at your personal credit score but do evaluate the data in your credit file to get an idea of how you handle your obligations. 

Lenders will do an in-depth check, called a hard credit check. Though the phrase can cause alarm, it is a necessary part of the qualification process and only harms your credit score if the number of checks over a short space of time is excessive. 

Your credit report contains information like:

  • Your name
  • Your address
  • Your borrowing history
  • The details of anyone you’re linked to financially. 

By checking your personal credit history, lenders can effectively see your debt repayment track record. That gives them a good steer on how you might deal with money they lend to your business

They’ll need your consent to complete a hard credit check, but it’s the simplest way for them to see that you’re a reliable, trustworthy individual who is likely to keep your side of the deal and pay them back. 

Top Tips –  Check your credit file regularly and put effort into tidying it up

  • Does it state the right address, date of birth and financial associates?
  • Are you on the electoral register? This tells the lender a government agency has verified your details. If you’re not, then register now.
  • Are your debts recorded correctly? If not, challenge mistakes with previous lenders.
  • If there are problems on your file, don’t stick your head in the sand, face up to the problem and seek to resolve it. 

2 – What You Own


Small business finance will always require directors/shareholders to guarantee the finance, so they will want some financial information about you. 

They’ll want to know things like:

  • Any income you have.
  • Any properties you already own.
  • Any other assets or businesses you have. 
  • The access you might have to other cash resources. 

Knowing your stuff and being upfront with information keeps things simple. Above all, lenders want to know that you can be trusted, so trying to keep information hidden is a big mistake. You’re much better off being honest and open, so they can see you’re a person of integrity and a good investment opportunity for them. 

Top Tip – Get prepared in advance 

Keep a regularly updated spreadsheet with all of the basic information, so you can dip in and grab what you need with ease when they ask for it. 

3 – Your Business

profit and loss statement

That’s right. The ins and outs of your business itself can aid in the securing of its funding.

How, exactly?

It’s simple. Lenders want to support businesses that are projected to be profitable because they’re more likely to pay the lender back. 

Lenders want to see:

  • A simple explanation about what your business does, how it operates and how it makes money.
  • Business bank statements – remember that all income and expenditure should run through a separate business account, not your personal account. 
  • Any historic business accounts.
  • An up-to-date profit and loss account 

Top tip – Know your numbers 

Being up-to-date and knowledgeable of your numbers also boosts your credibility. The biggest issue we find with small property businesses is that they have no book-keeping system and therefore have no idea about their numbers (turnover, profit, etc). If you don’t know your numbers, you can’t expect a lender to trust you with their money.

4 – What You Want To Finance

Alongside the financials mentioned above, your lender will want to know how you plan to spend the funds, how that will affect your business and how you will pay them back. 

What difference will the loan make to your future plans? How will you use the finance? What income projections do you anticipate? What return on investment do you expect to make when you implement your plans? 

You will need to show the lender you can afford to pay them back. This might sound like a big ask, but it’s actually pretty easy – simple projections are normally sufficient.

Don’t go in unarmed. You should know this stuff. If you’re not serious about your business, why should your lenders be?

Applying For Funding Is Straightforward If You’re Prepared…

But plenty of small property businesses fall at this very hurdle. 

Using other people’s money to give your cash flow a boost can increase the growth of your property business. 

Want to sail through the process and secure investment to grow your business?

Keep track of both your personal and business financials and have a straightforward, clear plan of what you want to do with the loan.

As you can see, accessing business finance doesn’t have to be scary, complicated or overwhelming. You just need to be prepared and have the right finance experts working alongside you. 

How To Get Help

If you want to use other people’s money to grow your business but are unsure how to access it, then Book a call with us today and we’ll help you to secure the funding you need for your next stage of growth.