Pre-Lending Reviews and Viability
Very often when you wish to borrow for the first time or add to an existing loan, banks will ask for an independent pre-lending review, covering areas such as
- Historic results
- Future profitability and cash requirements
- Creditor pressure
- Security position
In many cases they will instruct well known firms of accountants whose costs are usually expensive to tell you what you already know. This causes friction both to the existing Board of Directors and invariably to the company's accountants who feel just as qualified to produce or at least assist with the report ……….. though they are rarely asked!
Whilst we respect the lender's right to an independent report, we also know that they do not wish to upset what may be an excellent relationship with their customer and their accountants.
We have now established an excellent working relationship with many of the lending institutions who specialise in the sub £10M turnover business. We have a dedicated prelending reporting package designed around the lenders normal requirements.
If additional information is required over and above the basic report then we would agree an acceptable fee with the Board beforehand.
In our experience this has proven to be a valuable product creating an atmosphere where the lender feels comfortable with our report and advice, whilst maintaining excellent relations with the customer and their accountant.