Navigate Up
Sign In
Bookmark and Share

Financial Health Checkup — From Your Bank’s Perspective

How does your company’s financial performance rate with your bank?


How do you expect your bank will treat your credit line the next time it comes up for renewal? Are you prepared to engage your bank proactively on any problems that arise?

Related Article:

Debt Restructuring: The Strategy Behind the Negotiation. Debt restructuring is an option for some struggling companies. Read about the steps involved, how to get creditor buy-in, and the tax ramifications of these out-of-court settlements.



In the midst of the “Great Recession,” many businesses faced the harsh reality that the nature of their banking relationship has changed dramatically. Tightening credit markets have affected businesses in a number of ways, including:

  • Higher interest rates and fees
  • Lower line of credit caps
  • Demands for collateral enhancement
  • Demands for personal guarantees
  • Tighter loan covenants
  • More frequent reporting
  • Difficulty borrowing new money to buy equipment

Unfortunately, many businesses have been further surprised recently to find that their year-end numbers are causing unforeseen problems with their banks. Regardless of the strength of your company’s balance sheet and/or expected level of profitability, it’s important to anticipate potential issues with your bank and address them proactively, rather than reactively. 

Interpret Your Performance Level


Plante & Moran’s complimentary Financial Health Checkup (view a sample - PDF 195kb) will help you assess your performance in the quantitative areas that are typically important to your lender. Download it today, and complete the form in minutes. Then use the results to engage your bank in a proactive dialogue about your business.

Download the Financial Health Checkup