Most businesses currently have some form of Bank lending facilities within their business, be it an overdraft facility or some other form of Bank loan. These facilities are often reviewed at regular intervals, and in those circumstances presentations need to be made to the Bank. In a climate when some Banks are looking to de-leverage their portfolio, and others are somewhat reluctant lenders, it has never been more important that banking presentations are made as professionally as possible, ensuring that all the points that a Bank considers important to appraise, are covered. It is also vital that businesses are aware of any alternatives that may be available to them, so as to strengthen their position, by providing them with the widest possible choice.
The key therefore to maintaining and in some cases increasing the business lending is the presentation of a strong business plan and credible financial forecasts, clearly demonstrating both the reasons for the facilities, the benefits they will bring, and the businesses ability to service the debt. We are hearing far too often from lenders that businesses are presenting their financial position poorly. This leads to further questions having to be asked within the Bank, which erodes the Bank’s confidence and consequently often leads to a rejection of the proposal.
The clear message from the funding community is “take good, experienced professional advice from those organisations whose business is to understand the investor or lender requirements”.
If you would like further advice and information on the best choice of funding available to you, and how to ensure a robust presentation for your Company, please contact Barry Neeves at Pace Equity. Barry is an experienced Finance Director, and has helped to secure financing for many SME Companies.
T: 01491 577889