Demystifying the Funding Review Process

• There is a misunderstanding of the bank’s information needs to ensure that the customer is operating within the parameters set at the time of establishment of the funding facility.

• This is exacerbated by the lack of director financial literacy skills.

“When I advise Boards I use role-plays to demonstrate the banks information needs and their comfort zones on covenants.” 

Con Livissianis, Managing Director, Exemplar Performance Advantage

SME’s all start off as a micro-business.  As that business grows, in comes the book-keeper, then the accountant, while the original directors handle strategy and business development.  There is often a lack of financial and risk management skills.  Many a foreclosure could have been avoided, simply by becoming financially savvy and not relying on the accountant.

Company directors think that by delegating the high-wire act of bank negotiation, to the accountant, they will have a safety net to a soft landing.  It is the Managing Director and the Chief Financial Officer together who should be fronting up at the bank.

The value of the business can be destroyed simply by not presenting your financial information correctly to the bank. If the bank realises they have a financial illiterate in their midst they can begin to circle.

Solutions

1. Skills testing

2. Skills training

3. Consulting

Consulting

Exemplar will teach you the tricks of the trade which are so simple you will wish you did it sooner.

Some of the skills you will learn include:

• How to be proactive rather than reactive

• How to improve your “risk” profile with the bank

• How to improve your relationship with your Bank Manager

• Agree with the bank the KPIs that support the facility

• What information to present and how to present it to the bank