While many businesses are enjoying the benefits of historically low interest rates, the burden of satisfying the financial institutions increasing information requests can dissuade businesses from seeking finance to fund business growth.
It should not be surprising the bank requires a large amount of data upon applying for new finance or when refinancing with another financial institution. However, the bank may also request information when reviewing current facilities, often causing frustration, unexpected costs and funding delays.
A strong relationship with your bank is encouraged, however the relationship itself and historically positive results no longer seem to satisfy the due diligence requirements of the risk assessors within financial institutions.
Disruption to your business and general stress levels can often be reduced by simply getting on the “front foot” with the banks. This is where William Buck can help by:
- “Getting involved” and opening a line of communication with client bank managers. We can liaise directly with them on your behalf to ensure the information requests are interpreted, collated and transmitted in an efficient and timely manner.
- Providing advice regarding entity and finance structure before the funding is applied for. The earlier William Buck are involved the smoother the process will be.
- Reviewing and providing feedback in relation to your data files on a regular basis to ensure the “management” data (from electronic data files) is accurate and reliable. Current management reports are efficient to produce and can often provide some comfort around the current profit and cashflow position of an organisation.
- Preparing “3 way forecasts” to project the business profit and balance sheet and cashflow balances for any given timeframe. William Buck has access to powerful software and the resources available to collate this information in an efficient manner.
- Preparing your financial statements and income tax returns shortly after the end of the financial year. It is recommended that you advise William Buck of all bank deadlines to ensure the documents are prepared as a priority.
- Preparing full finance applications which incorporates the above in addition to providing potential lenders with a comprehensive understanding of the history and future of the business, which can include full business valuations (and can facilitate property valuations if necessary), business plans and succession plans.
- Assist with interpreting and communicating information contained in letters of offer to ensure you are aware of your obligations.
- Arranging for advisors from our finance broking and advisory division to review, compare and negotiate with major financial institutions on your behalf. The cost of this service can be covered by commissions received from banks for new finance and refinance.
While the structure and products need to be carefully considered, debt plays an important role in funding business growth. The administrative side of gaining access to funds should never act as a deterrent to the future growth of your business.
If you require assistance with managing your finance obligations, please contact your local William Buck representative.