Meeting the bank for credit: what to prepare
A strong credit request starts long before the meeting. The documents to bring, the story behind the numbers, and the mistakes to avoid.
The Bulb Holdings team ·
In every credit request, the bank is trying to answer one question: will the business be able to repay on time? The more clearly you answer it, the easier it is to get credit on good terms.
What to bring
- Financial statements. The latest annual statements, plus a current trial balance or P&L for this year.
- Cash-flow forecast. A 12-month forecast showing how and when the credit will be repaid.
- Purpose of the credit. Exactly why you need the money: working capital, equipment, expansion. A focused request is more convincing than a general one.
- Existing obligations. A list of current loans, credit lines and guarantees, across all banks.
- Receivables aging. Who owes the business what, and since when. It shows the quality of your revenue.
- Possible collateral. Know in advance what you’re willing to pledge, and what you’re not.
The story behind the numbers
The banker will see every dip in revenue and every weak quarter. Explain them before you’re asked: what happened, what you did about it, and why your forecast is realistic. A clear, transparent explanation builds trust.
Common mistakes
- Asking when you’re already under pressure. An urgent request sounds like risk. Arrange a credit line while things are good.
- An unsupported amount. “We need a million” without a calculation showing why a million and not six hundred thousand.
- Not comparing offers. Approach more than one bank, and compare more than the interest rate.
- Skipping the terms. Fees, collateral and financial covenants matter as much as the rate.
A well-prepared meeting doesn’t guarantee approval, but it greatly improves your chances of getting credit, and on better terms.
This article is general information and not accounting, tax or legal advice. Review your specific circumstances before making decisions.