If you need to borrow for your business it is important to ask yourself a number of questions before you approach a financial institution like a bank.

Am I giving too much credit to my customers? Are my stocks too high? Am I getting enough credit from my suppliers? Am I living beyond my means? In other words have I exhausted all the ways of avoiding going to the bank? Harsh questions but it is better to beat yourself up rather than get beaten up by someone else.

Nowadays banks do not like overdrafts. But they will lend for specific reasons like loans to buy property or equipment, invoice discounting or factoring to relieve the credit you have given to customers and sometimes, stocking loans (that’s for stock not hosiery!).

If you want some help on this, give us a call. We have the facility to sound out banks to see what the likelihood of successful borrowing is going to be in your case.