I meet with many different businesses during my working week and there is one consistent item that the majority of businesses fail to manage properly.
Business bank accounts!
A lot of businesses do not manage these effectively.
More and more these days lenders take the bank statements as a measure of how business owners, directors, actually run their businesses, their attitude towards effective cash management.
It is essential that as a business you ensure all direct debits, Standing Orders, issued cheques etc are met on time. Lenders take a dim view on continued missed payments, bounced payments etc.
If you are going to be seeking funding- then make sure at least that you have 6 months of good history on your business bank accounts IT IS MORE IMPORTANT THAN YOU THINK!
Might sound very simple, but regardless of the amounts involved- in fact the smaller the payment the more impactive it can be if not met, the bank statements and the management of them, are an integral part of any credit decision.