Financial pressures are a day-today challenge for small businesses in Ireland. In this difficult economic climate, SMEs face credit restrictions, adverse exchange rates and weakening consumer confidence. Accessing finance to meet short-term needs has been the biggest challenge for the SME sector in almost all situations.

The most common type of debt for SMEs, due to the relatively low risk to the lender, is Secured Lending. This is financed either with normal repayment from cash flow or, if that fails, with liquidation of the assets held as security. Although business financing is not as easy to come by as it once was, there are a number of ways to improve your chances of securing bank funding:

What is your plan?

Prepare a well presented and complete business plan. It is especially important to have a strong executive summary. This one- to three-page summary of your business plan is what bankers look at first - they will only read on if they like what they see.

Be clear on what the money will be spent on and how it will add value to your business.

Be honest and accurate with your business plan emphasise your competitive advantages, while indicating the significant risks and mitigations. Financial Institutions need to understand the strengths and weaknesses of the business. Instead of trying to hide any weaknesses or risks, acknowledge and explain how to overcome them.

Are your projections realistic?

Do the market research and make detailed projections on the company's future potential earnings. by showing a prospective financier that you have done the research, you add credibility to the application and show that you are a serious candidate. Remember: providing conservative projections is better than promising the world.

Are all key issues covered?

Ensure the business plan covers all the key issues and provides all the information needed by the lender to make a decision. proposals should be concise and fact based, with detailed financial statements and forecasts provided in appendices.

Present the proposal to the right people.

Direct proposals to the decision makers. This is someone at the most senior level possible to ensure it gets the attention it deserves and isn't delayed as it makes its way through a maze of in-trays.

Negotiate more than the interest rate.

Negotiating repayment, interest rates and equity stake, security, and terms & conditions helps give the fi nancing more fl exibility. Report requirements, covenants and other conditions are just as important to the fi nancing agreement as the interest rate. Take into account all of the potential fees involved.

Read the terms & conditions before signing.

Take time to read the terms and conditions carefully, and ask questions if you do not understand something. It is imperative that you take expert advice before entering into any financial agreement. If you have taken all the right steps and effectively 'done your homework' then the chances of having your funding proposal approved are increased. Once approved, follow through on the disbursement process. This will include satisfying any legal requirements, providing insurance documentation to the lender, and satisfying any conditions that are set out in the offer of finance.

It is your job to keep in regular communication with the lender and provide them with all required reports on time. keep the lender abreast of any changes or significant occurrences in the company - good or bad.

These suggestions on business funding are not exhaustive and only serve as guide.