How to get the most from your funder relationship
31/05/2018 / Comments 0
There’s more to a successful finance facility than the level of funding it releases. In fact, often the relationship with the lender and level of service are just as important as the money you can access.
But how do you get the most from your funder relationship? Here we look at a few ways you could improve yours.
Communication is key
Like any successful business relationship, communication is key. So, make sure you know who your key contact is and how you can get in touch with them. Always keep them updated with any key changes to your business.
Set clear expectations
It’s important to determine what you both want out of the relationship from the outset. Inform your funder of your strategies, your finances and the vision for your business.
Then take the initiative to explain what you’re expecting of them, be it ongoing support, development funding or an ability to expand offshore.
This ensures that you are both on the same page and working towards the same goals.
It is important to help your funder really understand your business; being vague or hard to reach won’t do you any good in the long run and should you need assistance, they won’t be able to fully help you without a thorough understanding of what you need.
Your funder most likely wants to see evidence of a coherent strategy, strong management control, consistent financial information and realistic forecasts.
- Why a finance broker is the ultimate sidekick for every FD
- 8 key questions to help you choose a commercial finance broker
- Do you trust Google with your financial decisions?
Do your research
Knowledge is power so get to know which facilities you’re eligible for, find out whether they’d work for your business and communicate it with your funder.
There is so much more available to your business than a simple overdraft or bank loan, so it is essential that you have a detailed understanding of your existing facilities and those available to you.
Don’t settle for less
If your funder relationship breaks down beyond repair or standards in service slip to unsatisfactory levels, it’s vital that you don’t just accept this treatment.
Try and resolve the issues with your funder and if that doesn’t work find a replacement facility that is better aligned to your expectations and requirements.
Talk to your finance broker
If you were introduced to your funder through a broker you should talk to them about the issues you are having. They will work with you both to try and find a solution.
And, if that’s not possible, they will be able to introduce you to another, more suitable facility for your needs.
If you’ve never previously used a commercial finance broker, now might be the time to consider it.
With so many funding options available on the market it can be challenging to find the one that ticks all the right boxes.
Talking to an experienced broker will relieve the chore of comparison from your shoulders, enabling you to concentrate on running your business while the broker researches and introduces you to a number of appropriate lenders with competitive rates.
If you’d like more information on how to get the most out of your funder and funding facilities, call our team on 0800 9774833 or request a call back.