Are you wanting to raise finance?
How would most business owners go about
doing that? Yes, that’s right….they pick up the phone to the bank and make an
appointment with their manager. Next, they go to the appointment. But there’s
one step missing here as the next step here is …..usually…….refusal of your
How do you substantially lower your odds of getting an acceptance of
your request for credit?
The missing step is simply preparation for
What does this entail? Firstly, have a
preliminary chat around the situation with your bank manager. If there is no
chance of receiving any credit from your bank, isn’t it better to avoid any
time wasting meetings for either party? In fact they hopefully can come up with
alternative ideas. As a minimum that is what you are looking for from your bank
manager if they can’t help directly through the bank.
If there is a chance of getting credit,
then here is where the preparation starts. Prepare a pack of information
including for example your last 3 years accounts (if available), last 6 months
of business and personal bank statements, a forecast for this year comprising
profit and loss account, cash flow (detailed by type of expenditure) and
balance sheet, personal statement of assets and liabilities & income and
expenditure together with a list of current unpaid sales invoices. Of course
your accounts and tax filings must be up to date.
What does this say to a bank manager? It
communicates seriousness and professionalism. If you were them, wouldn’t you
feel more confident in the business case for raising finance?
How do you increase you odds of success
even further? Of course, involve your accountant. He can make sure that that
everything is prepared in the way the bank manager wants!
The objective to this point in the process is
to make everything as easy as possible for the bank manager for presenting his
case (by this point it is his case)
to the credit sanctioning section in the bank. The bank manager is on your side
as you’ve convinced him of the professionalism of your case to raise finance.
He will go that extra mile for you. If he doesn’t, have you got the right bank
Of course we make it our job to find the
driven business minded bank managers who will find you finance for your already
proven business case for finance.
So prepare for your visit to see your bank
manager. We can help make the preparation easier. Your ABC step guide to raising
business finance from your bank.
To find out more on how we can help you, why not
give Jan a call on 07890 239442.