Be precise about the request
- How much funding is required?
- What will the money be used for?
- When is it needed?
- How will the facility be repaid?
Prepare clean historical information
Recent financial statements, management accounts and bank statements should tell a consistent story. Large unexplained differences or missing records weaken credibility.
Build a cash-flow forecast
A forecast should show expected collections, operating payments, debt service and the remaining cash buffer. It should include the assumptions behind the numbers.
Show downside awareness
Banks are interested in what happens if sales are slower, costs rise or collections take longer. A conservative scenario demonstrates that management understands risk.
Make the package easy to review
Use consistent currencies, reconcile figures between documents and provide a concise executive summary. A well-organised package can materially improve the quality of the financing discussion.
This article provides general business information and is not tax, legal, investment or other regulated professional advice for a specific situation. Requirements can change; obtain advice based on your facts where appropriate.