Despite what the banks are promoting, they are very reluctant to lend money, short term or long term or overdraft facilities. The local Bank Manager has no powers to grant any funds to their clients. They are their Customer Liaison Manager or similar title, lending decisions are done by head office. So how do you avoid being refused by your bank for a loan, plan ahead. you should have Monthly Financial Reports such as the Profit & Loss Statement and Balance Sheet always available to you. So in the last few weeks I have been working on Profit and Loss and Cash Flow statements constantly. The plan is to always be ahead. Avoid any cash flow squeezes and unless absolutely necessary approach the bank, but approach the bank with real numbers and be able to answer every question they may throw at you. Because despite what there PR says, they are not giving out money to small businesses. And in fairness to them, may small businesses are unprepared when going to their bank. The banks have money but they are not giving it away. If you want some you better be prepared for every possible reason that they may turn you down on. The good days are gone! money is hard to get.
Recent Posts
- Weekending 7th March 2010 – Banks, lending money and cashflow
- Week Ending October 18th – Writing Reports (and the need for bookkeepers)
- Week Ending October 11th – You Businesses Budget
- Week Ending October 4th – The frustations of accounting software
- Week Ending September 27th – The cost of your accounts not being kept up to date



