Learn: financial difficulty

How to approach your bank when trading is tough

Banks are far more helpful to a business that comes to them early with a plan than to one that hits a limit unannounced. A prepared approach makes all the difference.

Go early, not at the limit

Speak to your bank before you are pressed against an overdraft or a covenant, not after. Early contact signals control and gives the bank room to help rather than react.

Bring a plan and numbers

Turn up with a short cash-flow forecast and a clear ask — a temporary facility, revised terms, a bridge to a confirmed payment. Specifics backed by figures earn a better hearing than a vague request for help.

Be honest about the position

Overstating the picture rarely survives scrutiny and damages trust. An honest account of the difficulty and a credible plan to trade through it is what banks respond to.

The same preparation works when approaching any lender, including us.

We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.

See also: What to do when your overdraft is withdrawn, How to write to a creditor proposing a payment plan, Building a thirteen-week cashflow forecast.

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