As explained in the previous article “It’s all about Risk…” you’ll now understand that larger organisations get preferential treatment from banks. That’s the status quo and isn’t likely to change any time soon. So what can you do to improve the banks perception of your business, so that you achieve ‘next best’ status?
The answer is to make sure you present your business as the ‘next best’ lowest possible risk. This means you have to remove all possible negative ‘what if’ scenarios, wherever you can. What if these top two customers cancel their business with you? What if your cost of supplies increases unexpectedly? What if a senior member of staff leaves? What if demand in your market declines suddenly? And so on…
The more you think about all the risks that undermines the integrity and viability of your business, then you’re thinking like a banker. Banks don’t like risk. If you have given sufficient thought to the removal or reaction to risk, then you’re making it easier for them to lend to you.