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Access To Finance SME’s

Looking For Growth But Need Cash & Help

I recently attended a seminar held by HSBC about access to finance for smaller SME’s which gave an insight from the banks perspective. Listed below are some of the key notes from the presentation.

Sources of funding for business growth

  • Retained profit
  • Asset sale
  • Local government grants
  • Personal funds
  • Equity investors
  • Debt funding

This website was suggested and appears very useful

When Is The Best Time To Approach A Lender For Finance?

When looking for Growth / Expansion – Before you get to a negative situation

What Does A Lender Want To Know?

There is a variety of information that your bank will want

  • About You and Your business
  • Personal / Business investments
  • What is the purpose of the loan
  • How much money are you looking to borrow
  • Over what time period are you looking to borrow
  • Repayment approach
  • Note all of the above information should already be in your business plan / cash flow forecast

There are many online planning tools this is the  HSBC version

Access To Finance For Smaller SME’s – Is Your Current Planning Falling To Deliver The Results You Want

If you are looking for growth but struggling to identify how you will achieve this why not give me a call for a free impartial chat. The Growth Accelerator scheme may help you achieve the growth you are looking for simply call Andrew Goode on 01733 361729 or click here for more information

Inside Track To Bank Mangers

Some Bank Managers Are Encouraged To Work In Industry

Does Your  Bank Manager?

At a recent event I listened to a presentation by a Director of Commercial Banking. He gave an insight to the inner workings of a bank manager. Some of the points provided a useful background into their approach and expectations.
Interestingly in his bank they actively encourage their bank managers to work three days a year in business (i.e. outside of the bank environment to get a reality check of the outside world. These bank managers then actively work in these selected businesses (they are not just sitting shadowing). Part of the ethos behind this appears to be that as a bank they are looking to actively work with their customers and this is a way of demonstrating this in a practical way.

Tips For Meeting With Your Bank Manager

  1. Always prepare an agenda in advance and submit this to the bank manager so that they have an insight into what you are preparing for
  2. The bank manager needs to have a knowledge of your business
    • What sector / sectors are you operating in
    • Who are you customers  (types / profiles)
    • Who are your competitors, not only direct competitors but indirect competition and potential future competition
    • Who is involved within your supply chain
    • Key financial information
    • Note: Expect your bank manager to be following you on Linked in and Twitter
  3. A shared relationship plan – how the bank and your business can work together
  4. Your bank manager should be offering you solutions  not products; so if they try and sell you insurance find another bank
  5. Your bank manager should be able to signpost you to alternative routes of finance if these will be more appropriate to your business needs

Ahead of any bank manager meeting

  • Prepare financials and forecasts
  • Ensure your business plan is current
  • Have an up to date SWOT / Porters 5 forces matrix
  • Identify any inherent risks that you face
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