Opening a business current account is an important step for any business. To help you prepare, providers of UK business banking accounts have agreed a basic set of information that they will need from you. Please see this guide from UK Finance that includes all the essential details and documents you’ll need to open your account.

This guide applies to any new or existing businesses that:

• Have a turnover of less than £6.5 million;
• Have a straightforward and clearly defined ownership structure; and

Are based and operate in the UK – including your business owners.

Lenders retain the capacity and commitment to support viable businesses, so you should feel confident in approaching your finance provider, or others, if you wish to discuss finance needs. It’s best to do this as early as possible.

Figures show that banks approve around eight out of ten applications for SME finance.

If your primary lender cannot provide the finance you have requested, remember there are many alternative options at this stage and another lender may be able to support your business. There is a wide range of finance providers and types of finance. See here for the British Business Banks’ guide to other forms of finance.

The government also has a wide range of finance and support schemes available for businesses. Find out whether you are eligible for any schemes here.

It is important to remember that banks have an obligation to lend responsibly and there are times when a proposal does not meet a bank’s lending criteria, for example due to affordability or past credit history. In some cases, providers may make an offer that is different to the amount and type of finance applied for, which a business then chooses not to accept. In other cases, there might be other types of finance that are more appropriate to the circumstances of a business, whether these are provided by a bank or another finance provider.

These are the steps your business can take if your bank lending application is unsuccessful:

1. Appeal
If you’ve applied to your bank for finance and you have been turned down, you can lodge an appeal on the Better Business Finance website. You must submit this within 30 days of your original application, and you will need to meet certain eligibility conditions as explained on the website.

The following banks are part of the appeals process: AMC, Barclays, HSBC, Lloyds Bank, Bank of Scotland, TSB, RBS, NatWest, Santander, Ulster Bank, Bank of Ireland, Danske Bank, Clydesdale Bank, Yorkshire Bank and First Trust Bank.

2. Referral to Government Designated Platforms
If a small or medium sized business makes an unsuccessful loan application to a designated bank, the bank is obliged to offer the business a referral to the government-designated online finance platforms, subject to eligibility. These platforms aim to help firms find a suitable finance provider that may be willing to offer the required finance.

3. Finding Finance Tool
If you’ve been unsuccessful in applying to your bank for finance you could try the Finance Finder on the Better Business Finance website.
This tool brings together a wide range of finance providers across Britain, including business angels, regional funds, government schemes and banks.

4. Responsible Finance providers
If your business needs a simple and affordable loan and your bank is unable to help, try a responsible finance provider. There are responsible finance providers all over the UK, lending to businesses, social enterprises (and individuals) providing finance that is fair, support and advice. Find your nearest responsible finance provider at http://www.findingfinance.org.uk/.

My cash flow has been or may be disrupted, what should I do?

Businesses concerned about cash flow issues should speak to their financing provider(s) as soon as possible to discuss what products and support may be available. These options may vary depending on your circumstances but could include for example applying for or extending an overdraft, a working capital loan or other sources of finance such as invoice finance.

It might also be sensible to consider payment practice more broadly, for instance whether your payment terms are still appropriate, whether they are clear enough and whether you should consider tools such as the Small Business Commissioner to take action against poor payment practice of your customers.

Invoice finance allows businesses to use the debts owed to them by their client businesses (as represented by their invoices) to release funding immediately instead of waiting for payment. Invoice finance can usually unlock around 85 per cent of the value of an invoice straight away, with the balance (less the financier's fees) paid when the invoice is settled. In addition to invoice finance, asset-based lending can release funding against wider assets, including stock, inventory, work in progress, plant, and machinery.

Many invoice finance providers will also provide sales ledger management services and can support clients in making sure that they get paid. In addition, bad debt protection can be provided, as well as funding or invoice finance, which can complement a client’s existing trade credit insurance facility, unlocking working capital and helping clients manage their payment risks and do more business. See here for more information.

SMEs play an important role in achieving net zero and will need to prepare for a more sustainable economy as the UK Government has committed to the Climate Change Act which will see the UK achieve ‘net zero’ carbon emissions by 2050.Here are some steps your business can take to start reducing your carbon emissions and finding the right finance solution for any investment need:

1. Get measuring: Use a carbon calculator to work out the biggest sources of emissions. You can find these from a number of sources – the Carbon Trust has one specifically designed for small and medium businesses. There are also sector specific carbon calculators (for example, the Sustainable Hospitality Alliance has a calculator for hotels) If you supply to a larger company, they may ask you to use a recommended calculator. You may also need to understand the carbon emissions of your supply chain. You should work with suppliers to ensure consistency of measuring carbon emissions.
2. Consider what actions competitors are taking: There are many good practice case studies available. The CBI’s Goal 13 Impact Platform and the UK government’s Business Climate Hub share good practice.
3. Engage the whole team: Your employees may have good suggestions about reducing waste.
4. Develop a plan: It is important to take into account the information you now have on the main sources of carbon emissions, for your business and your supply chain. Consider where you will save money, where you may become more competitive and increase business activity and whether, and at what stage, you may need investment.

You don’t need to change everything at once. A step-by-step approach may feel more manageable

For more information on taking climate action, see ‘Finance green: a guide for SMEs’ here.

Export trade is critical to the UK Economy.  The value of UK total trade in the 12 months to the end of August 2022 stands at £1,533.2 billion (Source: ONS). The thought of international trade can be intimidating – especially if you’re a new or inexperienced importer or exporter. Unfamiliar procedures, rules and paperwork can all feel challenging.

But there is a lot of support and advice available to help you take first steps through to successful international trade.

If you are thinking about exporting goods and services overseas, visit the government’s step by step guide on Exporting goods from the UK.

The Department for International Trade also has an advice page that can help on, for example, how to draft an export business plan and finding an export market.

Additionally, many business trade associations have dedicated export support services, so check these out.

As always, in you decide to go ahead and start exporting or expand into new countries, speak to your lender.  Many lenders also have dedicated support services.