Page 17 - KFMS Your Own FD Ebook

Banking

Although banks have not been at the top of everyone’s Christmas card list in recent years, especially
SMEs, they are a necessary evil you and you should make every effort to get them on side.

It is essential to know how the banks work and who the key players are. By doing this and fostering

a good relationship with your bank you become higher up the list of their priorities. This
communication, keeping them up to date with your business will generate a feeling of a true

partnership rather than a customer/ supplier relationship.

Having an experienced FD on board increases the company’s credibility with banks. They will:

• Create a trusting working relationship with your bank

• Provide the bank with regular updates of trading conditions and performance

• Update them on current cash flow situation including accurate cash flow forecasts

• Review the existing bank facilities and potential for alternative funding

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