Maximizing The Banking Business


Many businesses cannot get financing from banks, because they feel they do not have sufficient collateral. However, it seems that banks are more likely to love the first.

Martin Balaam, who since April 2005 has been weak dotcom, IT Redstone lush lips and communications services provider, create a positive relationship with the Bank’s priorities.

He said: “My first suggestion is to make sure you are prepared with a bank that you want to stay, they are expensive. After that, it is important to develop a relationship with the right person at the bank. Our bank told us: “We do not expect the facility now, but this is our plan.”

“After that, we show them what we do and how we do it. That means that when we go back to them and asked for the facilities, it was not the first time he had seen his face. ‘

Maximizing The Banking Business

Avoid Buzzwords

Banks do not want to listen to soft sales and marketing speak. Instead, I want you to be realistic about your risk. Balaam find they want to see the substantial recurring income and a high level of income of the Contract. “If banks hear things like” do no harm “, they’ll think you’re in cloud cuckoo land,” he said.

Sometimes a mixture of equity and debt is the best way to boost your business, VIN Murray, CEO of Computer Software Group, after starting to use their own capital.

“In the early days, you need a dilution fitting the ball rolling,” he said. “But if you have the right model, as you progress, you will end up with a bigger piece of the debt [or money] and a small piece of equity, because business must generate enough resources for you to use cash flow to fund the bank loan. After that, it just becomes a virtuous circle. ‘

For smaller, growing companies or similar Redstone, through the factory, bank financing on reasonable terms cannot come soon. “At the end of the day, [the bank] must determine whether to give,” said Balaam, since Redstone is building credibility with bankers first. He added: “If we have some good profits and a half years behind us, we negotiated the Bank facility of £ 30 million.”

Thinking Outside The Box

If they cannot immediately produce sufficient facts based on performance alone, you can try another way to get your foot in the door of the bank. Balaam said, “If you do not close a deal with your banker, a good way to get a non-executive chairman or director to help. It is a relatively inexpensive way to access the bankers. If not, you can go through a broker or examiner. ‘