What will the bank want to know?

1. Information Gathering

Your bank will want to initially gather information about the business which will include some or all of the following:

Financial statements, Management accounts,  Business plan, Financial / cash flow forecasts, Budget planner, Statement of assets and liabilities, Bank statements

This information is needed  to build a picture of your current and forecasted situation, ensuring that the necessary documentation is available to make an informed and responsible decision. It also helps them to understand how your business would service the finance.to identify the most suitable option which doesn't’t put your business at unnecessary risk.  The level of information gathered will vary for each situation but key elements include the Cash flow analysis, Business plan, History of your trading records and Statement of the following can be used as a guide:

  • Financial Statements: The latest Financial Statements, covering at least three years historic trading - final accounts if possible, rather than draft. If your business is a start up - do you have financials on any previous Business(es) that you’ve run?
  • Management Accounts: The latest available management accounts covering the current trading position (since the last Financial Statements).
  • Forecasts / Business Plan: Details of your future expectations for the business and the assumptions that have been used in drawing these up
  • Statement of Assets, Liabilities, Income & expenditure: Details of your personal financial position will be requested for most family businesses
  • Bank Statements: At least six months statements (business and personal accounts)
  • Certain requests may require specific information – such as estimates, invoices or copies of quotes

2. Questions and Answers

The next step will be to gather additional supporting information such as What is your business history?, What is the purpose of the finance? Does the amount in question achieve the required purpose?, What is your personal investment in the business/ venture? Is the finance affordable? What is your repayment plan? What impact to the business will the finance have? What Security are you able to provide?

3. Assessment and Decision

The quality of financial and business information provided will impact the decision making process.

The bank will be open and honest about the feasibility of your request and you can be confident that decision made will be the right one for your business. If finance is refused there should be a clear explanation.