How should I prepare before applying for business funding?

The short answer

Understand the system before choosing an action.

Funding preparation begins with a defined business purpose, a supportable amount, a specific use-of-funds plan, current records, and a realistic repayment explanation. Readiness also involves understanding lender expectations, complete cost, collateral or guarantees, covenants, documentation, and what happens under a difficult scenario.

Financial Learning Cafe explains the subject. Your current agreement, official sources, facts, jurisdiction, and appropriately qualified professionals control the decision.