1. Start with solid and transparent accounting
One of the first things a bank will assess is your company’s financial history. If your accounting is disorganized, with outdated records or unclear statements, the loan is likely to be rejected or come with poor conditions.
Tip: Keep your accounts up to date, organize your financial reports, and use digital accounting tools that make it easy to share information with financial institutions.

2. Have a clear, well-structured business plan
Banks want to know why you need the money and how likely you are to repay it. A detailed business plan—with objectives, financial projections, and risk analysis—instills confidence and professionalism.
Be sure to include:

• Justification of the investment;
• Execution timeline;
• Projected return on investment;
• Marketing and sales strategy;
• Competitive analysis.

3. Know your financial profile
Before applying for credit, understand your company’s borrowing capacity. Analyze ratios such as:

• Financial autonomy;
• Current liquidity;
• EBITDA (earnings before interest, taxes, depreciation, and amortization).

Tip: Simulate different scenarios to see how new debt would affect your cash flow.

4. Strengthen your share capital
Companies with stronger share capital are viewed as more stable and trustworthy by banks. Consider increasing your capital through profit reinvestment or bringing in new shareholders.
Additionally, stronger equity can boost your eligibility for support programs and subsidized credit lines with mutual guarantees.

5. Prepare guarantees or collateral
If your company lacks credit history or is deemed high-risk, banks may require additional guarantees. Be ready to offer:

• Personal guarantees;
• Pledge of receivables;
• Mortgage on business assets;
• Support from mutual guarantee societies (e.g., Norgarante, Lisgarante).

6. Essential documentation: don’t miss anything
When applying for a loan, make sure to submit:

• Financial statements from the last 2 years;
• Updated balance sheets;
• Tax declarations;
• Proof of no debt to Social Security and Tax Authority;
• Business plan or investment project;
• Identification documents of partners and the company.

7. Choose the right bank (and the right product)
Not all banks have the same risk policy or SME-focused products. Compare offers, talk to different account managers, and look for institutions that offer:

• Credit lines with public guarantees (e.g., Capitalizar line);
• Tailored solutions for your sector;
• Experience in supporting business growth.

8. Consider specialized support
The loan application process can be technical and time-consuming. A consulting firm specializing in financing and public funds can help you:

• Improve financial indicators;
• Choose the best credit line;
• Prepare a strong application with the right documentation;
• Negotiate better terms with banks.

Pro tip: Even if you don’t plan to apply for credit now, preparing today ensures better conditions tomorrow. Financial planning is power.

Ready to finance your SME’s growth?
If you need help preparing your business to successfully apply for financing, get in touch. Our team of consultants can assess your case and find the best financial solutions for your company.

Schedule a free assessment with our experts and find out what the next steps are to make your SME more solid and prepared to attract investment.

Click here to schedule your free assessment.

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Andreia Arenga
16.06.2025

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