Does the bank love your business?

When you want to grow, you need capital. Most small businesses require cash to get started, and often that comes in the form of a loan. It might be that you need to buy plant, cover employee salaries or cashflow the business until it reaches a sustainable size. A business loan can help with any of those scenarios.

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But getting a business loan can be a labour-intensive and sometimes frustrating process. Banks want to lend money, but they need to be persuaded. And you don’t only want to be approved for a loan, you want to be approved for the right amount and on the right terms.

So how can you make this process run more smoothly? If you had a CFO, that person would prepare statements and cashflow forecasts, as well as working on the financial side of your business development plan, determining how much money you need and how much debt you can comfortably service. Small and medium-sized Kiwi businesses rarely have CFOs, but a virtual CFO can do all those jobs for you when you need a business loan.

We’ll also help you deal with the bank’s officials, attending meetings and being on your side in negotiations. We can provide all the supporting material that quickly demonstrates the strength and potential of your business. As your virtual CFO, we can:

  • Create financial projections
  • Show current performance
  • Summarise the business’s financial position
  • Demonstrate how the debt will generate growth
  • Predict potential financial questions the bank may have
  • Make a case for the loan from a financial perspective

In addition to these services, a great virtual CFO can help you investigate your various borrowing options. We can help you research the different banks, both large and small, all of which offer business lending. There are also other lending options to consider, like peer-to-peer, angel or private equity investment. Are there better interest rates or preferable terms available? Are you prepared to sell down some of your shareholding? And of course, we’ll put together a schedule that will show you the payment amounts and differences between the options, so you can compare apples with apples. Finally, are there grants or subsidies your business is entitled to? Our virtual CFO service can put together the information required to apply for one of these funds.

Don’t let a lack of capital hamstring a brilliant business. The right documentation and presentation will help the bank love your business. That can give you the funds you need to grow it to the next level.