Finance Health Check provided by Lonsdale
It should be done at least once a year, or when there is a major change of circumstances in the business which affects cash flow. One example of such a circumstance is the ongoing local and global credit crunch. Many other factors can also affect the financial position of your business – customers going overseas for their products, changes in technology or equipment or production processes. A finance review is all about establishing financial safety nets.
Careful consideration should be given as to how and where the finance should be sourced. As with investments, you should diversify your borrowings. No one lender should have all the loans. Often, when companies have financial problems, the lender ends up running your business.
It can be difficult for small to medium businesses to ‘shop around’ for the optimum finance arrangements, particularly as it is a time-consuming process. You should consult with your financial planner and finance broker to perform a finance health check.
In summary, these specialists will:
– have their finger on the pulse of prevailing lending conditions and be able to access financial solutions from a broad range of lenders
– act on your behalf in presenting your case to these financiers
– utilise a range of financiers which will provide you with a series of good relationships rather than ‘one bad marriage’ and
– ensure that companies get the right loan structures in place such as loan terms, flexibility, special conditions and the securities that you have to provide.
In the current environment credit can be difficult to obtain. More and more information is required by lenders even for existing customers. Small business owners who present a loan application to a lender run the risk of not presenting a complete, compelling business case and risk having the Bank decline the loan. These days, once a financier has formed a negative view of an application it is almost impossible to submit further information and change their mind.
Our Newcastle financial planners can help you to work with a finance broker, establishing a strong professional relationship that can assist your financial health for the long term, as they gain a true understanding of your business and your needs. Your financial planner and broker can assist you with finance for a broad range of areas such as machinery, property, motor cars and more specialised finance tools. Essentially the broker becomes an active member of your team.
Speak with our Newcastle Financial planners about how to access a quality broker to assess and review not only your leasing facilities but all of your current business funding arrangements.
Visit the SMSFs website for more information.
Processing your request, Please wait....
