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More Tips To Get Bank Facilities.

The infamous question to a business owner is “How can I get financing support from the bank for my SME business”.  It takes time and research for the bank to understand your business operations. Without adequate information, the Bank may reject your application according to its internal credit policy and regulatory requirements. 


Usually, a bank will require a borrower to provide key business information and operational data to assess and understand the business. The information includes the trade cycle, financial information, key management profile, sales and purchase documents, etc. Therefore, any information which is lacking would cause further questioning and the doubt of the information credibility.

Preparation of Financials

Bank will only deal with documents and numbers. The most important information provided is financial pieces of information. The financial information includes your management account, audited/non-audited report, bank statements, aging list, purchase order list and/or accounting system. The credit department or your banker would input your financial figures into an internal system in order to generate a credit score which has a substantial impact on your approval. The bank will then work out each number shown on your documents to verify the authenticity of your financial performance. Therefore, before applying for a bank loan, get well prepared on all the financial information in order to increase your success rate of approval.

Know The Risk Appetite Of Banks

The risk appetite of each bank is one of the major factors for approving your bank loan, and each bank risk differs. The risk appetite doesn’t mean that the size of the bank but the direction of business they are working for. Major banks have more resources and offering to SMEs with a wider variety of credit options compare to smaller alternative lenders. However, you will be rejected if your business or financing needs are not their target business given banks have a rigid policy on business development. A piece of advice, before approaching your desired bank, you have to understand their recent appetite on target customer industry, turnover, banking products and financing tenor.

Be Precise Of What You Need

Every business owner has a strong desire for the bank to lend them money without any restriction from the working capital loan. But banks have a dozen types of banking facilities to support a business with various credit risks. Approval of credit facilities relies on the result of credit risk assessment. Thus, you must know what your financing needs are and apply for the right facility. For example, your financing needs are advance payment from receivable, then you should apply for invoice financing. The appropriate risk level application would substantially increase your probability of successful approval.

Connecting To The Right Banker

Last but not least, building a connection with the right bank and maintaining a good relationship is the key. Knowing that the bank will support you on financing for now and the future, you will need a good relationship manager to help you build trust with the bank. If you are connected with the wrong party, it may cause many of a delay as well as ugly situations amidst applying for banking facilities. 

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