JPAbusiness

Interest rates are at record lows in Australia right now and, to address the various impacts of COVID-19, the Commonwealth Government has introduced a number of programs to kick-start and boost the economy, including the Coronavirus SME Guarantee Scheme.

Some might argue there’s never been a better time to borrow money to invest and grow your business!

Launched in March, the SME Guarantee Scheme was designed to help otherwise viable SMEs weather the devastating impact of COVID-19 and rebuild for the future.

Phase I ran until September 30 and was not broadly taken up – less than $2 billion of the $40 billion allocated was approved for payment.

Topics: Banks and lending, Cash flow, Working capital, finance, seeking finance, business finance, COVID-19, coronavirus

This week we’ve created a two-part video series offering advice on how to communicate with your bank, financier or investors, and what pieces of information to share, if you’re looking to secure funding and ongoing support in the current environment.

In last week’s video I mentioned that smart business owners are using this time to ask tough questions, including: “What is the best balance sheet and funding structure for my business, going forward?”

As I said then, the smart businesses – even if their balance sheets are quite strong and they have funding lines – are talking openly to their financiers, sharing re-forecasts and securing extra funding lines, just in case things become more difficult over the next 6–12 months.

Topics: Banks and lending, Banking, running a business, seeking finance, business finance, COVID-19, business strategy

When considering whether to ‘take a risk’ on your business and fund it, a bank or financier will usually focus on three S’s:

• Servicing
• Security
• Surety.

The infographic below sets out 7 factors which contribute to your ‘surety’ in the eyes of a bank or other financier:

Topics: Banks and lending, infographic, equity investor, seeking finance, business finance

Many business owners, in small and large firms, don’t really focus on their balance sheet. They look at their profit and loss and, if they’re making a profit, they think ‘everything’s fine’.

From our experience, the balance sheet of a business is often the key to its success.

This is because a healthy balance sheet is often the key to being able to withstand shocks; it gives financiers the confidence to support your business with additional funds when things are tight.

Topics: Banks and lending, Running your business, infographic, Banking, running a business, finance, balance sheet

Your banker or financier is a key partner in your business and, as with all successful partnerships, good communication is key.

The following cheat sheet contains some of our top tips for communicating with your bank and setting yourself up for a strong partnership.

Topics: Banks and lending, cheat sheet, Banking, business partners, business finance

A bank, financier or equity investor focuses on three S’s when considering their appetite for your business. They are:

• Servicing
• Security
• Surety

None of these factors are completely controllable, but they are strongly influenced by your actions as a business owner.

Our cheat sheet can help you understand and manage these factors, to help create a strong and positive relationship with your bank or financier.

Topics: Banks and lending, cheat sheet, Banking, seeking finance, business finance

A bank, financier or equity investor focuses on three S’s when considering their appetite for your business. They are:

• Servicing
• Security
• Surety.

None of these factors are completely controllable, but they are strongly influenced by your actions as a business owner.

Our cheat sheet can help you understand and manage these factors, to help create a strong and positive relationship with your bank or financier.

Topics: Banks and lending, Running your business, cheat sheet, Banking