How can Sli£k Bookkeeping help with my business relationship with my bank?
Have you ever been to your bank to ask for a business loan, increased overdraft or help in overcoming a cash flow problem?
Have you been asked to present an interim business report indicating the present financial position of your business before the bank will make a decision?
Have you had to pay several hundred pounds to your accountant or financial advisor to generate this interim business report?
Many business owners go through this cycle time and time again and all this report generating and waiting for a decision to be made can be emotionally exhausting and costly in both time and money.
You may ask why the bank takes this stance. But the bank is a business itself and it needs to stay in profit like any other business and thus, it needs to understand if providing your business with its requested service is high, medium or low risk.
But why do some business owners seem to have little trouble in gaining the help and support from their bank. A key factor is that these business owners build a good relationship with their bank manager demonstrating on a regular basis the financial position of their business.
These business owners make a point of keeping their bank manager informed on their business position on a regular basis (this may be for example a one hour meeting every three months), and NOT just when they require a particular service from the bank.
This approach demonstrates to the bank manager that the business owner has its business finances under control. In addition the bank manager is able to relate and understand why the business owner is asking the bank for support.
For example, if a business owner in his three monthly meeting with his bank manager in June, indicated that the business will have a cash flow problem in September, due to additional material requirements for an increased order to be delivered in November, then it is highly likely that the bank will support the short fall in cash in September, since the bank has a better picture and understanding of the business postion in conjunction with a greater trust level of the business owner.
Often this approach not only yields a quicker response from the bank in relation to your business request, it can also result in better bank terms for your requested service , it can save you money!
You may feel that relationship building with your bank is going to be time consuming and difficult BUT if you choose to use Sli£k Bookkeeping to manage your business bookkeeping, then its going to be like a 'walk in the park' Presenting your business financial position using Sli£k Bookkeeping can be done with almost zero additional work.
