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When approaching the bank and bank managers always remember that they have bosses and that they must provide regular reports to head office. Keep them informed, when your business is doing well let them know. If you foresee a need for additional borrowings or an extension to a limit, give the bank as much notice as you can. Banks need to plan as well, you may be surprised how helpful the bank staff can be if you keep them informed of your needs.
If you are going to meet with your bank manager please remember the 5 P's.
Be Positive. If you are not positive about your business do not expect others to be.
Put your ideas clearly and concisely do not be technical, bankers are not technicians.
People. Ensure you contact the correct people use call centre for assistance but you need to contact the manager or mobile lender when conducting negotiations.
Point in the same direction. Make sure all information and what you are saying point in the same direction. It is no good saying my business is growing and the profit and loss statement shows the reverse. If someone starts to question what is said because of inconsistencies they then distrust everything.
Be Prepared, know all about your business. Have a file with incorporation dates, turnover, accounts receivables and liabilities etc. When you are asked detailed questions about your business you need to know the answers. If you don't then who will?
Please note this information is for general assistance only. We accept no responsibility for the information supplied. Please contact your professional advisors as required.