How to get bank finance - advice for start-ups

Working out how you're going to finance your start-up is one of the most fundamental building blocks of starting a business. And for many new businesses, the bank is the most obvious place to go. No wonder - you're not risking relationships by borrowing from friends and family and you don't have to give away any equity as you would if you got VCs or other private investors involved. Or you might choose a combination of all those options, and use the bank to provide the overdraft facilities or short-term loans you need to manage cashflow.

So how do you stand the best chance of getting bank finance? How do you start that all-important business relationship with your bank on the right foot?

In this advice video for small businesses and start-ups, we get the low-down on how to get bank finance from the chairman of small business banking at RBS and NatWest.

Peter Ibbetson talks about when you should approach your bank to talk about the business you're starting, whether you should apply for a loan or an overdraft, how to make cashflow forecasts, the Enterprise Finance Guarantee (EFG) and what other support you can get from your bank manager.