Early Engagement with your Bank
If you are looking to grow your business it is crucial you start to talk to your bank at an early point not 5 minutes before you need the cash.
Building up your "credibility" and trust starts from the beginning of the relationship - so start building!
Begin the dialogue and start sharing basic information on a regular basis so your relationship manager "gets it"
Background and history
what you do,
how you do it
where is your market
what your plans and ambitions are
financial information : Year end accounts, up to date management accounts, debtors, creditors and and financial forecasts
Be aware that when funding is required (depending on amounts) decisions are not usually made by front line managers but in collaboration with a credit department within the bank. You need your business managers support and confidence as they are the first filter and are front of house in the process. You will need to convince them that the proposal is viable.
They in turn recommend the proposition for credit approval. Whilst credit applications and processes vary between banks the fundamentals are very similar. The application to credit is likely to contain the basic information above together with:
Operating perfomance
Liquidity
Current and proposed funding
SWOT analysis
Sensitivity of financial projections
Risk appraisal: Security, Debt Serviceability
If you are having difficulty with either the presentation, content or with your bank please call us.
