Don’t panic… FY17 might have been a shocker but it doesn’t mean you can’t get the finance you need to recover and grow your business.
Put your best foot forward
If this year’s trading results were not as good as last year’s you’re probably worried about having a discussion with your bank about getting more finance. You might also think that you have nothing more to offer the bank as security.
However, if you believe that your current and expected trading results are sufficient to service your proposed loans, then a good Finance Broker can help you prepare a case in ‘bank speak’ to find the right lender and help you get finance after a bad year.
There are more financing options than ever before available to free up cash flow and access capital from within your business. Stock finance, debtor finance, asset finance secured by old and weird business assets, insurance premium funding, to name a few.
When it’s been a bad year though, many people are worried about alerting the bank in the concern they might run the risk of it removing or reducing existing lending facilities. That’s why having a trusted Finance Broker on your side can make all the difference.
A Broker will ask you the relevant questions and obtain all the right information to help you put your best foot forward to the bank. They will help you be more confident and certain that the funding you need is ‘gettable’ and will not cause your bank any unnecessary concern.
every lender is different
Each lender has its own unique requirements for the provision of financial information for your business. Some lenders rely on your last financial year results, some average the past two years, some will rely on the better of the last two years, and some the worst. Some lenders will insist on final FY17 accounts, some are still ok to rely on FY16 accounts, some want interim management accounts, some want BAS statements, some want cash flow forecasts….and so it goes on!
Final Thoughts
Don’t get confused. Talk to an experienced Finance Broker first to find out how you can free up cash flow or access capital from within your business and what’s really needed to get finance after a bad year.