In his recent appearance on the AM Show, economist Cameron Bagrie made some very pertinent observations, and they very much match up with what we are seeing in the market. It’s always easy to blame banks when they give us answers we don’t like.
We need to be prepared to look in the mirror and ask ourselves ‘Did we really present our case to best advantage?’
Remember, the bank does not understand your business as well as you do; it’s not really invested. You need to have some clear understanding of what you are requesting and what outcome you are looking for in respect to amounts, costs (interest and fees), security required, and terms and conditions.
Putting all this together and being confident in presenting and negotiating with the bank is no easy task, and requires some planning and preparation.
You need to articulate how you manage the business and its cash flows, what are the risks in the businesses, and how would you handle any downturns or disruptions. Do you understand what your business’ break-even sales and gross margins are? Do you have accurate management information systems and updated cash flow projections?
Likewise, if you are successful (or perhaps even if you aren’t) are you happy with the outcome? Are costs and terms and conditions market competitive and workable?
At Oxford Edge, we are here with an experienced former corporate banker, Matt Eaden, to help you with the process so that you are properly prepared and to ensure that you get the best possible hearing from the bank.
Aren’t you better to be ‘in control’ than in the ‘dog’s breakfast’ category? Contact us today to talk about your next bank lending application.
