Business, Equipment & Home Finance for SMEs
Increasingly when businesses look for funding from a Bank they will be asked to provide three way Financial Forecasts. In the past, often a simple cashflow forecast would have been sufficient, however whilst a cashflow forecast can be helpful as a guide – its ability to provide Lenders with a comprehensive overview of the future [...]
Often when lending against a business, a condition of approval set by the Banks will be that the business operate within and/or meet certain Financial Covenants. For business owners, unfamiliar with the concept Financial Covenants it can be a scary prospect! It can be hard enough to run a business, meet interest and repayment obligations, [...]
To enjoy business success there are four critical questions that need to be answered: Who - are our ideal customers or major customer groups? What - are the needs we meet or the problems we solve? How - do we do it? Why - should customers choose us and not our competition? Business Success Question [...]
When borrowing against a business, whilst the financial elements are clearly important, they are only part of the picture! In our last post we outlined the key criteria Banks use when faced with a request to lend against business assets and cashflow. However, meeting the criteria we outlined is just the starting point. For a Bank [...]
A question regularly asked by business owners is what do Banks need to lend against a business? Another common question is – what key criteria do I need to meet so that I can have my home removed from the Banks security arrangements? The answer to this will vary widely depending on: How long the [...]
Assessing and managing risk is a crucial part of managing a business, but finance risks are a critical risk that is often overlooked! When I talk about finance risks, I am not talking about affordability, but proactively managing the risks presented by the finance market in general. As finance is such an important part of [...]
