Is your bank manager supportive?

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Now, perhaps more than ever, a business’ relationship with its bank is going to be crucial.

With interest rates rising along with inflation and energy prices, there is even more pressure on businesses than there was at the height of the pandemic.

As restrictions ease and Covid loans have to be repaid, at the same time businesses are keen to return to full production and activity.

It is likely you will need your bank manager’s support and if you haven’t previously taken the trouble to cultivate a good relationship it is time to start doing so.

Key to this is convincing them that you are on top of your business finances, and our free to download cash management plan will help you to know your situation and demonstrate it to your bank.

You can download it here.

But to convince your bank that you are on top of things the manager will want to see evidence of integrity, that you have a plan setting out clearly what support you need and that the plan is convincing, not only that it can work but also that you can deliver it.

Latest figures from the Insolvency Service for January this year showed that the number of corporate insolvencies had doubled compared with January 2021. Moreover, there was a prevalence of liquidations rather than companies going into administration, suggesting that these businesses had no way forward for their survival.

To protect your business it makes sense to ensure it has access to funds for survival and growth when it needs them and key to that is the relationship your business has with its bank.

This article from K2 looks at what you can do to ensure the bank’s support.

Have a read and message us if you’d like a chat.