In order to mitigate the risk with some companies, a bank may issue a loan covenant, which enforces certain conditions on the borrower in order to secure a loan. Typically, these can include showing your accounts every quarter and ensuring that your accounts are ready 9 months after Year End.
In these circumstances, maintaining a good relationship with your lender is key. Be proactive by keeping them abreast of any changes in the business. Notify them of any potential problems on the horizon and any exciting new business opportunities. By valuing and nurturing your banking relationship, problems down the road can easily be avoided.
Managing your business debts can cause high levels of stress when it really does not need to. If you need some help or would just like to ask a few simple questions about managing business debt please feel free to call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.