Deal with the Bank
When running or starting a business, one of the biggest hurdles is securing financing regardless of whether it’s from a bank, credit union, venture capitalists or an equity investor.
Both parties have the same objective – to get the best possible deal; you want the best possible rate and they want a healthy investment. Here are four tips to make sure you are ready.
Know who you are up against – Whether you are approaching one of the major banks, your local credit union, the Business Development Bank of Canada (BDC) or an equity investor, they will
all have their own specific questions as to why they should be investing in your business. Do your research before the first meeting to anticipate their questions so you can provide thoughtful, informative answers.
Don’t limit your approach – The road to taking your business to the next level may not be an easy one and if you find yourself turned away by one investor, be ready to approach another. Banks, credit unions and the BDC all have strategic investment plans. Your business may not be a fit for what they are investing in at the time, but it may be a perfect fit for their competitor.
Find the right fit – The right match is important to promote future communication and your company’s ultimate growth. If it’s not the right fit, don’t be afraid to explore alternatives.
Be business plan ready – Prepare a thorough business plan. Include a concise description of your business, highlighting your passion and enthusiasm to entice the investor’s appetite to know more and read on. Within your plan provide a detailed analysis of your market, customers, competition, marketing strategy, operational plan and key employees’ knowledge and skills.
Crunch the numbers – Too often, an investment is overlooked by an investor because the numbers to support the proposal have not been provided or are not considered reliable. Be sure to provide historical and projected financial statements to show your plan has merit.
Crowe MacKay can add significant value to your proposal with the timely reporting it needs and the knowledge and experience to help you get the most out of your banking relationship. On the path to business growth make every opportunity count. Contact your local Crowe MacKay advisor to see how we can help.
Stay Connected. Sign up to receive our quarterly newsletter, important tax and financial insights, specialized reports and bulletins.
Our Clients Speak
"...We are continually impressed with their knowledge, professionalism, and interest in our business. Hiring a great accountant is an important part of growing a successful business and we've made a very good choice."Justin Archer Managing Director, Berlin Advertising and Public Relations