The first thing you’ll need to do is prepare a business plan and forecasts of future trading, profit and loss accounts, cashflow and balance sheets as well as providing past financial statements. If the business does not have a good financial status, your business plan will need to be particularly persuasive that you can ‘turn it around’.

From what you say regarding the business, any lender is likely to deem finance as high risk. You should approach a bank with which you have a good relationship and ask about a loan under the government’s Enterprise Finance Guarantee (EFG) scheme. The bank will require a business plan and depending on your credit history/personal assets, will ask for security against some or all of the loan. But first and foremost the bank will need to be convinced that whatever the amount of the loan or overdraft, your cashflow will be sufficient to repay them.  

There is a good Practical guide to Cash Flow and Finances (July 2009) from The Royal Bank of Scotland (RBS).

It includes sample information that the bank will require to support on application for a loan, as well as signposting for further assistance. Other banks will have similar help.

To help in preparing a business plan you may need the assistance of a chartered accountant.

See also: Regional funding boost for business