Insights
Banks & credit7 min read
What the bank actually wants to see before it says yes
It is not the business plan. It is evidence that someone in the company is watching the cash.
Written by: Asaf Moalem · 18 years in corporate finance
The document vs the signal
Banks ask for a business plan because they need a document in the file. What they decide on is different: does this company know its numbers, and will someone call us before a problem, not after?
Four things to bring
Bring four things. A 13-week cash forecast. Last twelve months actuals against budget. A one-page description of what the credit is for and how it comes back. And the covenants you propose yourself.
Sitting in the meeting
Then sit in the meeting as the CEO who knows the numbers, with the CFO next to you. That combination gets better terms than any deck.