• Immediate Working Capital
  • Growth, Aquisitions, MBOs
  • No Need for Re-negotiation
  • Instant Cash Flow
  • Saves Management Time
  • Improved Collections Performance
  • Recession-Proof Thinking
  • Practical How To Guides
  • Business Knowledge Bank
  • Fast Track Response
  • Competitive Rates
  • Personal Service
Don’t Take No for an Answer
Date Added: Wed May 20 2009
‘Shop around’ is the advice chartered accountants are giving businesses seeking finance.
 
“If funding requests fail, businesses should be prepared to challenge the decision,” says Clive Lewis, small and medium sized business specialist at the Institute of Chartered Accountants in England and Wales.

“A business with a good credit rating will be able to borrow a lot more unsecured than one with a poor rating. When turnover is falling, profits are falling and asset values are dropping, credit ratings go down. Banks have to put more capital aside to cover the risk of default for a business with a lower credit rating.

Clive Lewis gives the following advice on how to get the best from your lender:



  • Promote your business, its potential and its ability to weather the recession;

  • Speak often to your contact;

  • Have a strong management team

  • Have tight financial controls and sensible financial forecasts;

  • Model your financial needs carefully and avoid building in too much ‘headroom’;

  • Aim for strong control of day-to-day cash flow;

  • Tighten credit control and avoid bad debts;

  • Do not expect borrowing to be based on base rate;

  • Ask about the Government-backed Enterprise Finance Guarantee scheme.