A tightening credit market has made it more difficult for businesses to get the Funding they need. Whether it is to invest for the future, or for working capital requirements, getting funding from a Bank is vital for business. Understanding how banks assess lending opportunities will help you maximise your chances of getting the funding you require.

A bank will conduct an internal and external analysis of your business.
Internal analysis looks at:
• Management – Determining how good the management of your business is
will go a long way to determining the lending decision. Do your management
team know the impact of the current market conditions? What is their track
record of trading in a downturn?
• Resources and skills – The skills and resources of the people within your
company will also be looked at. Are they experts in their field? Think about both
tangible (human resources, technology, technical skills and qualifications) and
intangible (reputation, experience) resources in your business.
• Structure and systems – What are the production skills and capacity of your
company? Are your business processes outsourced or reliant on other
companies? If so, what are the risks associated with those companies?
How well are they faring in the current climate?
• Style and culture – Consider the power culture within your company. What are
the controls in place if power is devolved to regions or sub-units within the
company? How empowered are your employees if the decision-making power
is all centralised?
Think about the people culture within your company. How satisfied are your
employees? What is the management style and work ethic within your company?
Remember, there are no right answers to these questions. However, a lender will
want to understand these factors when evaluating your business. Be as open as
you can when providing this information. The better a lender understands your
business, the better the chances of getting the right level of funding you require.

Visit Barclays Commercial for further details on getting financial help from banks