It is perhaps galling for SME business owners to read in the FT today that bond and equity fundraising in the first three weeks of this year is the largest for over two decades, just when the credit supply to their segment remains very tight. I am currently fundraising for growing business in a sector adversely affected by lockdown and many doors are closed.
Most SMEs are reliant on their own bank to step up when needed to help businesses manage through this period, and the key to placing yourself in the best position, whatever the circumstances, is good communication.
Every interaction with the Bank is an opportunity for you to educate the Bank about the business, pointing up the reasons why it is sustainable. Do not shy away from the risks, but explain how they are managed. Regularity of information builds trust, and a set of results and forecasts that indicate steady progress will count more than a spectacular upturn every so often. A good mantra is ‘no surprises’ that will prove reliability and help the Relationship Manager to position your business favourably.
Banks are focused on their own customers more than ever – use this time to keep them informed. Just in case.