The importance of having an early and honest conversation with your bank if your business is, or expects to be, strapped for cash cannot be overstressed.
Acting early can prevent difficulties later, including reaching the point of having to use personal funds to save your business, or having to make late payments which impact your business’ credit score. Plus, if you are planning to borrow money from your bank, you may be given better terms if you do not to have credit utilisation or late payments on your record.
Also, your bank will be able to inform you of all of your options, which will only begin to diminish the longer you leave it. Additionally, a relationship with your bank is symbiotic – they do better if you do better, and vice versa.
Here are some of the ways Corelco approach negotiations:
• Know the numbers.
Quantify your current situation and profitability, how much money you feel you require, and what future trend you would forecast for your company.
• Know your situation.
Be ready to articulate exactly what the problem is and how you think your bank can help.
• Don’t forget about the alternatives.
If you are not sold by what your bank can do to help you, remember that Corelco can suggest finance options outside of your current banking arrangements.
• Don’t rush it.
Panic can set in when you feel like your business is hanging on by a thread, but you must be confident that the solution you choose is likely to work. Corelco will help to steady the ship and support you whilst we prepare a strong case together.
Call Corelco on 0203 773 1417