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The ABC step guide to raising finance

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 request…. 

How do you substantially lower your odds of getting an acceptance of your request for credit?  

The missing step is simply preparation for the meeting.  

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 manager?  

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.