Warren Buffett said: “When a management with a reputation for brilliance tackles a business with reputation for poor fundamental economics, it is the reputation of the business that remains intact”.

I have noticed lenders reverting to this maxim at a time when their credit policies have become even tighter following the wave of covid-related loans now weighing heavily on bank balance sheets. In other words the track record of management is given less credence, and businesses need to focus on the quality of the narrative that identifies strengths and builds confidence in the future outlook.

Indeed the Bank of England were reported in the weekend FT as “urging lenders to keep credit flowing” and “support viable, productive businesses”.

What does this mean for owners? The reasons for the loan need to be compelling and clearly articulated. Using a professional advisor with experience of working inside banks to compose a proposal that meets the likely credit challenges, has never been more important.