The requirements to run a bank have been sharpened significantly compared to just a few years ago. If a bank has to lend money to a company and make operating credit available, the documentation has to be prepared in more details, and your bank requires a better understanding of the business it has to finance.
If you as CEO prepare your documentation to your Bank Manager better, you will encounter a much more open dialogue with your bank.
Today banks have to require a higher solvency than before. For example, if you need DKK 1 million, the company itself has to provide maybe 20 % or 30 % of that. This basis is healthy, and if you do not have equity equaling this then it is worth making a plan that sticks and consolidates your business. It is best that you address this issue before the bank does.
Peria Capital offers assistance regarding:
- Preparation of documentation for your bank
- Preparation of a change of bank
- Increasing your credit line
- Making investments
- Other related assistance.
We assist with preparing the material that has to be presented to the potential new bank. The material must among others contain:
- A review of the business plan
- A 3-year financial budget
- An assessment and description of the various risks for the company.
- A business plan or a draft version of this. It must contain a detailed description of the company and possibly how the company will appear in the future – including new business areas, restructuring, organic growth or similar information. This will be used as background material for the presentation.
- Financial information enabling us to prepare a 3-year financial budget. This material is used when modelling a multi-year budget in EXCEL. This important when making a financial budget model where it is possible to make adjustments to various variables. This will allow you to ’work’ with the EXCEL model and thereby achieve a better understanding of the future earning potential.
- An objective evaluation of any business related risks. Here the focus is primarily on a potential decrease in orders, loss of clients and other factors that could have a major impact on the company’s future earnings. After identifying these factors, their individual impact on the company’s earnings will be listed in a table.
If you are not in possession of the above or you are missing one of the items then we will solve it together.
We look forward to hearing from you – and so does your bank.