MAXIMISE YOUR BUSINESS
FINANCE OPTIONS Steven O’Neill of Pitcher Partners examines the changing domain of finance, and provides valuable tips on maximising your business’s potential to finance new growth opportunities.
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s a new business or one looking towards growth, you’ll inevitably experience a need for additional working capital to fund the establishment or expansion of your business. The majority of businesses will be approaching either their existing bank
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financiers or a new bank for assistance. But despite the low interest rates being offered, since the GFC the banking market has remained extremely conservative in its lending practices. Information requirements for approval of finance applications are more stringent than ever before.
Getting the picture straight
The importance of presenting professional and accurate information to potential financiers cannot be underestimated. Financiers want to be confident in the quality of your reporting and in the reliability of financial and other information, especially when they’re looking to fund small to medium sized businesses. In the current environment of ‘instant information’, bankers do not believe that there is an excuse for providing aged, inaccurate or unsophisticated financial data. Of course, preparing accurate numbers to support your proposal is only half the battle. Outlining your experience and matching your strategy and business requirements to the financial data presented will allow your financier a full
picture of your business vision and its funding requirements, allowing you to demonstrate why an investment in your business will be a success. Typically, such a plan would outline: • Your business’s background • Key director and staff profiles, including details of relevant experience • Market analysis, including competitors • Marketing strategies (both short term and longer term) • Operational plan • Management information systems and reporting • Financial plan, including forecast financial model. In preparing such a plan, it’s important that business owners take a step back from their companies and be objective about how they are performing. It is often helpful in these circumstances to enlist help from trusted advisors so that issues can be dealt with objectively, honestly and thoroughly. Whether starting from scratch or looking to extend your operations, the banks will be
