Running and growing a business presents the owners and managers with numerous challenges on a daily basis. Some of these challenges are completely out of the hands of the business, unforeseen and uncontrollable. So when there are challenges that can be minimised and even turned around to be a business asset these are the areas that must be identified and capitalised on. This can make life easier, stresses less and remove road blocks from growing and expanding your business. #bankingnews
Help your business to run with ease!
One of these avoidable challenges is your relationship with your bank. Here are 3 key ways that you can strengthen the relationship with your bank and help your business run with ease. #sydneyaccountants #acc
This may seem simple. You might be saying ‘yeah, yeah, yeah’, but what else? There is almost nothing more important then communication. Banks don’t like surprises, so make sure that you don’t withhold information that is important from them. If you are having trouble with cash flow, creditors, or don’t think you are going to meet a covenant requirement than tell them - and tell them early! Your Bank Manager will appreciate your honesty and you might be surprised at the options and solutions that they can help you with provided you tell them early!
Know your business needs
Rather than going from one short term solution or loan to another you should have a solid long term business plan. Talk to your accountant, determine what your future growth strategy should look like. If you know where you want to go it is easier to work out how you are going to get there and what help you will need along the way.
Having this knowledge and being able to present it to the bank shows them that you have a long term strategy. It also means that they can tailor the solutions that they provide to you to ensure that it is scalable for your future growth. You might find that because they have the bigger picture of your needs you can negotiate a better deal and cheaper rates.
Negotiate and follow the terms of your agreement
If you are going to talk the talk you need to walk the walk. Negotiate hard to get the best deal with your bank. But do this on one condition, you need to fully understand the covenant requirements that the bank expects and you need to be confident that you can meet them. Missing a covenant can affect your relationship with the bank and your future banking. Make sure that you can meet the requirements, but if you can’t for some reason make sure you let the bank know with plenty of notice so that you can find an alternative solution. Which takes us full circle back to communication! So the key first and foremost is communication.
Having difficulties with reporting required for banks?
Make sure you follow these three simple tips to maintain a strong professional relationship with you bank! Remember that your bank is a key business partner. You need to foster that relationship, keep them involved so that they can help you. We are experts in helping our clients with reporting required for banks and with relationships across all major banks we are only too happy to help you navigate this relationship. Speak to our team if you need assistance.