The importance of understanding your client's business by Martin Risman
Ask the Managing Director of an SME business these days if he’s content with his financing arrangements, and the answer may surprise you. Often, the most frequent frustration is “my banker just doesn’t understand my business. How can he help me grow my business if he doesn’t understand my cash flow, seasonality and profit expectations.” After all, a loan is just a loan? An overdraft is the same for any company in any industry?? An off-the-shelf receivables financing facility will cope with the cashflow demands of a recruitment company in exactly the same way as it will for an engineering Company or an IT reseller? Maybe, but more likely, maybe not.
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Posted on Dec 19, 2005 Region: Best Practice Articles
Ask the Managing Director of an SME business these days if he’s content with his financing arrangements, and the answer may surprise you. Often, the most frequent frustration is “my banker just doesn’t understand my business. How can he help me grow my business if he doesn’t understand my cash flow, seasonality and profit expectations.” After all, a loan is just a loan? An overdraft is the same for any company in any industry?? An off-the-shelf receivables financing facility will cope with the cashflow demands of a recruitment company in exactly the same way as it will for an engineering Company or an IT reseller? Maybe, but more likely, maybe not.