Financial health checkup: From your bank’s perspective
Business owners are often surprised when year-end numbers cause unforeseen problems with their banks. Our Financial Health Checkup helps you assess your performance in areas important to your lender.
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?
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.
Regardless of the strength of your company’s balance sheet or expected level of profitability, it’s important to anticipate potential issues with your bank.
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.
