Lets help the banks!
That is a headline you don’t see too often…because they are often classed as the enemy. But we need to make the bank our friend. And you need to help your relationship manager support your business, by setting out a proposal that will carry their recommendation. That means understanding what makes a successful proposition and addressing this in a constructive and informative way.
At this time everyone is focused on the emergency loan schemes, and whilst the key ingredients of a good borrowing proposal have been unchanged for decades, the banks are currently focused on a narrow set of criteria that give them the evidence that you need the loan you are seeking, have taken all available action to cut costs, and have the ability to repay the loan over time.
The advent of the £50,000 Bounce Back Loan this week has removed a headache for smaller businesses as the 100% Government guarantee has made the application straightforward, without the need for external advisors. My focus remains on the CBILS scheme for loans between £50,000 and £5m, and the CLBILS scheme for larger businesses.