Dealing with financial institutions

Finding out how to obtain business funding is important because the typical small to medium business will eventually reach a point where shareholders are unable or unwilling to provide more capital or shareholders loans.

When shareholder capital is not sufficient to meet all the needs for major capital expenditure, companies need to borrow in one form or another in order to fund trade debtors or to grow the business. 

Accessing external finance can be as simple as obtaining supplier credit terms by completing a one-page credit application, or by using a motor dealer in-house facility to finance a vehicle purchase. 

However, when approaching a bank for major finance facilities, the process is more complex. 

Banks tend to go through cycles with their lending policies. In good times, they relax their lending criteria, lend more freely and take more risk. When the economy slows, the result of this scenario is a rise in their bad debts and a tightening of lending policies. But in good times or bad, following some basic guidelines for seeking finance from your bank can greatly improve the chances of success.

Download your free guide to dealing with financial instituttions

This free guide to Dealing with financial institutions will provide you will some valuable tips, including:

• how to go about obtaining funding for your business 
• what banks are looking for when lending to businesses
• where to go for further information.