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Building “that” Banking Relationship PowerPoint PPT Presentation


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Building “that” Banking Relationship. NOV. 2012. Choosing the right option: Debt v/s Equity. Debt or Equity what would be the best option?

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Building “that” Banking Relationship

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Building that banking relationship

Building “that”

Banking Relationship

NOV. 2012


Choosing the right option debt v s equity

Choosing the right option: Debt v/s Equity

Debt or Equity what would be the best option?

  • Deciding between equity financing or taking on a loan is a challenge all SME owners face. Should you go to a bank and apply for a business loan? Or should you look for an investor? 


Building a sustainable relationship with banks

Building a sustainable relationship with banks

Key steps

  • Building a Business Case

    • Knowing your need

    • Understanding your business risk

    • Role of finance manager/auditor

    • Presenting your case

  • What can the bank do?

    • Advisory role

    • Simple and transparent process

    • Need based product delivery


  • Know your needs

    Know your needs


    Understanding business risks

    Understanding Business Risks


    Role of finance manager auditor

    Role of finance manager/auditor

    • Develop internal controls in the business.

    • Identify business challenges and potential opportunities for greater efficiency and results.

    • Identify potential financial risks eg. liquidity in the business.

    • Detailed analysis of financial data and its underlying reasons

    • Periodic Reporting to Banks.


    How to present your case

    How to present your case?

    • Assessing the suitability of bank capital as a source of funds for the business. 

    • Matching business needs of capital with different products and services of the banks.

    • Preparing an thorough application for bank finance.

    • Share a detailed utilization plan of the facilities requested

    • Have a mechanism regularly update the bank of material changes to the business


    What do banks look for

    What do banks look for ?

    • Banks are in the business of lending and risk sharing

    • Banks seek information which is quantifiable, verifiable and sustainable

    • Different banks based on their preference and internal know-how define and operate in target markets of their choice

    • Lending is based on a variety of factors which the bank seeks to asses


    Cause for concern

    Cause for concern

    Re a son

    Absence of reliable information

    Inadequate accounting & financial statements

    High Risk Perception

    Lack of proper feedback/references from market

    Historical performance unavailable


    Typical approval process in banks

    Typical approval process in banks


    Banks disbursal process

    Banks Disbursal Process


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