A business review is often requested by a business’ funder. This request can be for a variety of reasons; in support of a request for additional facilities, as part of the ongoing covenant between customer and banker or because the funder has concerns over the operation of the account and the business.
Whenever it comes and whatever form it takes a business review can be an unwanted drain on time and management energy. Not only is the business review a daunting prospect for many owner-managed businesses, but it is also disruptive to the day to day operation of the business.
I have almost 30 years of experience of business reviews. I have carried them out for banks in the whole range of circumstances, I have instructed them to be carried out as a banker and I have supported clients subject to the process.
The key is, as a senior figure in Royal Bank of Scotland once told me, to speak “fluent bank”. Understanding what the bank requires and why takes away the fear factor for the business owner / manager. Having someone on board who can manage the process, interact with the funders and represent the interests of the client while at the same time allowing the day to day running of the business to continue is invaluable.
At the end of the formal review process there will have to be agreement on an action plan. The business will often feel pressured into agreeing what the funder requests, even if it is not possible or, in the opinion of the owners not in the best interests of the business itself. My experience of all sides of this process gives me an unparalleled perspective enabling me to act to secure the best solution for all parties.
After that, if necessary, I can provide ongoing support in the implementation of the plan and interaction with the funder.
