How to use the site
Our site helps SMEs prepare for banking. Taking bank credit for the first time is considered an onerous task. bebankable.com removes the ambiguity and uncertainty. Preparation for banking is a fourteen step process. Clicking on the step icon, describes what a SME needs to do to do to become bankable. Please connect with us for help with the banking preparatory process. Please also connect if you want to simplify any step and / or add a step.
As a SME, the bank is trying to understand the nature of your business.
An SME is defined as an entity engaged in an economic activity, registered either with the Commercial Registry (DED) or with a free zone and meets the threshold of employee headcount and turnover applicable to the industry group that it belongs (Trading/ Manufacturing/Services)
|Dubai SME Defination||Trading||Manufacturing||Services|
|Micro||<= 9||<= 9 mn||<= 20||<= 10 mn||<= 20||<= 3 mn|
|Small||<= 35||<= 50 mn||<= 100||<= 100 mn||<= 100||<= 25 mn|
|Medium||<= 75||<= 250 mn||<= 250||<= 250 mn||<= 250||<= 150 mn|
SMEs can be broadly classified under manufacturing, trading or services, wherein, each sector has its own unique characteristics and can influence the financing requirements.
For example, a manufacturing business may require financing for purchasing heavy equipment whereas a service oriented and a trading business may seek financial assistance in the form of bank guarantees.
The nature of the business indicates whether it is sensitive towards ups and downs in the related industry.
Bank wants to understand the SME’s business model.
The below diagram depicts the graphical representation of an SME’s business model Banks want to understand the key business suppliers and customers.The bank would critically evaluate the SME’s existing customers, the length of the relationships, the dependence on a single customer, the scope for new customers, and the overall diversification of customer base. Instances where an individual customer contributes to a major share of the SME business can be viewed by the bank as a risky proposition, due to the element of concentration risk. Furthermore, banks typically view diverse business relationships as a good indicator of the stability of the business and its corresponding sustainability in the long run. For example, securing positive arrangements like favorable supplier credit terms can be viewed as a sign of trust and long standing relationship with the business.
- Who are the customers?
- What bundles of products and services are offered to each customer segment?
- Who are the key partners? Who are the key suppliers?
- What are the important costs inherent in the business model? Which resources are most expensive?
- What value is delivered to the customer?
- How much does each Revenue stream contribute?
- What are the profit margins?
- What are the aspects that keep competitors away?
Banks want to assess how the SME is run on a day to day basis.
Banks are looking to have a broad understanding of who supports the business operations, who assists the business in day to day finances, who takes on the sales & business development role, who manages the business when the owner is away etc. This knowledge will help the bank identify whether the management is owner dependent, who the key people are and the SME’s ability to handle vulnerabilities in the business. Banks will look at the background and experience of the management, to understand if the management demonstrates commitment to the business and the business success in the long run. The entrepreneur’s commitment is reflected by his capital investment in the business and through the re-investment of profit into the business to allow it to grow in the long term. These behavioral aspects influence the bank’s decision to lend to the business.
Another important aspect that banks are looking for is a well-thought out succession plan that takes care of key-man dependencies and related risks that impact the sustenance of the business. For example, a bank may be cautious to lend to a laundry business that, regardless of running on a successful business model, lacks a succession plan.
- Who manages the business when you are away?
- Succession planning
Banks want to review the ownership structure to understand the stake in the business.
SMEs that run on partnership or family run structures reflect a multiple ownership structure. Due to the capacity for multiple stakeholders in the business, it creates room for differences of opinions and lack of clarity. This may be viewed as an aspect that hinders future business growth.
In the non-free zones, it is mandatory for a local sponsor to hold 51% and expatriate owner to hold 49% stake in the business.
Banks are trying to assess the stake of the business owners and if they possess stakes in multiple businesses. The bank wants to understand how the other businesses have fared and if those businesses have grown with reinvested money.
Another important aspect that banks are persistently trying to assess is the element of uncertainty arising due to the expatriate owner’s ease of leaving the country.
In general, the expatriate partner runs the business with limited or no participation from the local sponsor in the day to day operations of the business.
For these structures, banks want to understand the stake of the business owners and whether they have reinvested in to the business.
For example, banks are watchful in lending to a business with the expat owner having 49% stake and who has been repatriating his business earnings to his home country rather than reinvesting to the business. The bank has to deal with the risk of the expat owner leaving the country without meeting their loan obligations.
Banker’s often associate the term ‘Skip Risk’ with such instances and are looking at businesses where both partners show commitment to the business.
- Who are the different stakeholders?
- Statement of owner’s equity
Banks want to identify your business needs.
It is important for SMEs to clearly explain the business to a bank by disclosing information on business workings, cash conversion cycles, customer segments and product service offerings. This dialogue will help the banks understand the profile of the company in terms of what it has done, what is it doing and what the business plans are? Banks seek this information to aptly serve SMEs for different purposes for example to meet bullet payments, working capital gaps, transfer money to suppliers, purchase of equipment etc.
Once the banks get an understanding of your business, they would like to know why your business would need finance. Financing needs of an SME can be categorized into transactional, working capital and fixed asset financing needs.SMEs may require financing for working capital requirements like the purchase of raw materials, payment of wages, and payment of bills or meeting overhead expenses. In addition, SMEs may require funding for expansionary requirements like purchase of equipment, construction of factory, technology up gradation, introducing a new service or even diversification efforts. SMEs seek financing when their business growth after deployment of the funds justifies the borrowing with healthy profit margins. It is essential that the SME is specific about how it plans to use the financing, mentioning ‘working capital’ is not an adequate explanation. For example businesses with high inventory turnover, such as fast food or supermarkets can turn inventory into cash quickly, need to have less working capital than large equipment manufacturers or specialty retailers that have less control over converting assets to cash and need to have higher working capital reserves.
The SME must be prepared to provide information pertaining to why exactly the business needs the funds. The banks will critically consider where the SME is looking to deploy the funds in the business and whether the business has exhausted all other options. If the funds are to purchase a new asset or even to meet a working capital gap, the SME should be able to provide supporting information for the business need.
SMEs can avail alternate financing options before approaching a bank.
Many SMEs may consider options like subcontracting, favorable credit terms with suppliers, distribution agreements or joint ventures and strategic alliances, before approaching a bank. These alternate sources help several SMEs meet challenges that their businesses face, through a non-borrowing route. For example, if a business is lacking funds to manufacture a particular product, it may seek an established manufacturer to undertake the production on a contract basis. Or in the scenario when a business needs equipment, it may be able to obtain it from equipment producers who are willing to loan out their goods to sustain growth and create new business avenues.
Another common example is, when the business negotiates with long term suppliers for favorable credit terms, for instance increasing the credit period from 30 to 60 day credit. Gaining superior trade terms such as grace period on credit purchases can be an effective form of financing. These trade terms allow a SME to maximize the use of internally generated cash before it is disbursed to the vendor.
- Has your business looked at non-banking routes?
- Identify avenues to pursue alternate sources of financing.
Banks assess why the business needs external financing.
SMEs may not be in a position to bridge working capital gaps from their current operations and as a result, face difficulties to fuel their daily operations and future growth plans.
Furthermore, the business is unable to utilize neither their own internal sources of funding nor leverage on any alternate options. In such circumstances, SMEs seek external financial assistance and approach banks to meet their needs.
Banks would assess if the SME has exhausted all other routes and what the inherent need of the business is. Businesses seeking external financing should have clarity on the tenure of its financing needs and must be in a position to justify the tenure with a supporting business need. For example, if the requirement is a recurring injection of cash for working capital gaps or a onetime requirement for purchasing an asset.
- Prepare a statement explaining the need for external financing.
- Match your business need to an appropriate source of financing.
When is debt a suitable option for SMEs?
SMEs seeking debt finance need to have a business track record, a sustainable business model with regular cash flows and an ability to provide collateral. The business must be cognizant to the debt obligation that comes with debt financing and therefore, should ensure their business has reached a consistent level of activities to support debt.
Generally, the proprietor will evaluate the opportunity cost of investing internal funds versus investing borrowed funds into the business. Any potential to pass on the cost of debt to the ultimate customer and at the same time generate a healthy profit will help the proprietor make a borrowing decision.
- Evaluate the opportunity cost of investing internal Vs borrowed funds
When do SMEs look at equity as the best option?
SMEs tend to inject equity from known sources like family or friends, especially during the initial 3 years of establishment. Equity from the market is typically a limited option to SMEs, except in scenarios where the SME gets a sizeable revenue and market traction.
Generally, if the proprietor is not able to carry on the cost of debt and simultaneously generate a good profit margin, then the equity option is availed. In such scenarios, the business seeks to attract business partners with aligned objectives to work towards the growth of the business.
The existing debt position of the business must be balanced with equity, or additional equity must be obtained to balance future debt. The rule of thumb is for the equity position on a balance sheet, expressed as equity divided by assets, to range from 30 to 50 percent. If your business has an equity position of less than 30 percent and you wish to obtain financing for growth, a certain amount of money will have to be injected as equity to finance additional debt.
- How do you assess that your business needs more equity?
The business should evaluate its ability to support the cost of finance.
Options of financing carry related costs to avail it, for example debt involves the ability of the business to regularly meet the fixed obligation of interest payments and principal payment during the end of debt tenure.
A business can use debt to support growth but to an extent, that could still be serviced if the revenues declined significantly. Having a debt coverage ratio of 2 or more means that operating income could be reduced by half without causing debts to default.
From the bank’s perspective, the bank would critically consider the ability of the business to meet the cost of borrowing and the ability to provide assets as collateral.
- Can your business meet the cost of borrowing?
Do you have stable cash flows?
The bank will evaluate the regularity and predictability of the cash flows by analyzing the cash conversion cycle and visibility of revenues. Importance is given to the ability to generate cash, keeping in mind, the key cost components and drivers of revenue. Additionally, existence of any trends in costs, revenues and margins would be critically analyzed for any irregularities or shortcomings.
The SME’s policy towards receivables, inventories, payables and customer retention play a crucial role. In the same perspective, cash flow projections based on current level of operations and estimated future growth of business can also help both the business and the bank to take an informed decision.
- Cash flow projections will be assessed for the ability of the business to support debt.
Banks provide different types of financial instruments
A broad understanding of the different options available can enable the SME to take the right borrowing decision. It is important for an SME to choose the most appropriate product for meeting their financing needs. For example, manufacturers and distributors with creditworthy customers can opt for receivables discounting wherein, from the bank’s perspective, the bank can convert the account receivable to cash quickly. In addition, the SME should not opt for long term financing to bridge working capital gaps in the business, as this would be an inefficient route of finance.
Banks broadly provide the following products/services to SME businesses:
- Transaction products (Current account, Term Deposit, Credit Card)
- Asset Financing Products (Term loan, Leasing, Hire Purchase, etc)
- Working Capital products (Overdraft, Factoring, Invoice Discounting, etc)
- Trade Finance Products (Letter of Credit, Trust Receipt, etc)
- Guarantees (Bank Guarantee, Performance Guarantee, Shipping Guarantee, etc)
Click on the tabs titled ‘SME Finance and ‘Pricing of products’ to learn about banking products.
It is advisable for SMEs to match their financing requirement to a specific product rather than obtaining a revolving credit facility. Even though a revolving credit facility offers more flexibility, it is likely to include more restrictions. For example, there may be minimum notice periods before a sum is advanced; the lender may set upper and lower limits on the amounts which may be drawn at any one time and the lender may reduce the available funds towards the end of the term. As the availability period for draw downs is long, the total commitment fees will be higher. Borrowers may tend to overspend the limit and may find themselves caught in a debt trap.
- Match your business need with the right financial instrument.
The level of rates associated with financial instruments differs.
Each financial instrument is associated with a level of risk and thereby corresponds to a calculated rate of interest. Banks adopt different pricing methodologies depending on the amount, loan period and the SME’s ability to provide collateral.
The table below broadly enumerates the levels of rates existing.
|Product||Level of Rate|
It is also important that the proprietor is able to differentiate between reducing balance loan and flat rate loan. In a flat rate loan the rate is calculated on the principal amount of the loan for example a fixed/flat rate of 10% is calculated on the loan amount. On the other hand, under the reducing balance loan, the interest rate for example 11% is charged on the outstanding amount of the loan i.e. after the deduction of the periodic interest amounts. The flat interest rates are easier to calculate and are normally lower than reducing balance rate however, the SME must be cautious as the EMIs under the flat balance rate is much higher. SMEs should be cognizant to this aspect before availing a loan from the bank and select the most appropriate rate for the business.
Banks would assess the debt service coverage ratio to calculate the repayment capacity of the borrower. The ratio measures the amount of cash flow available to meet the annual interest and principal payments on debt. The acceptable industry norm for a debt service coverage ratio is greater than 2.
- Understand the different level of interest rates.
- Choose the appropriate type of loan (reducing vs. flat) to match your unique business need.
Documentation requirements while applying for a loan
The process of getting a loan can take anywhere between 30 to 90 days. By being prepared, the SME can speed up the process. The SME can start by gathering all the necessary documents for example banks require at least 2 to 3 years of audited financial data. Having all the documents that a bank might require will set the relationship on a right note. The bank will view this as being organized and that the business owner is responsible.
Generally banks broadly expect the below list of documents:
- Company’s legal documents (Trade License)
- Company profile (including past performance)
- Ownership structure / organization chart & profile of top management
- Personal experience of entrepreneur
- Succession Plan
- Business Plan including the Business Model
- Statement from borrower as to the need for borrowing
- 2/3 Years of audited financials
- 6 months Bank statements (or personal bank statements for start-ups)
- Financial Forecast (Cash Flow Projections)
- Aging of receivables/inventories/payables (for working capital loans)
- Cash conversion cycle
- Credit Facilities with other banks/financial institutions
- Personal borrowing declarations
- Personal guarantee of partners along with personal net worth statement(s)
- Availability of collateral
- Insurance policy in favor of covering bank obligations
Additional Documentation requirements
Banks may ask for certain additional documents which are specific to a particular sector.
- Assignment of fire insurance on stock
- Hypothecation on stock
- Assignment of point of sales terminals
- Assignment of insurance on stock / fixed assets
- Hypothecation on stock
- Mortgage on machinery (mainly for medium-term loans) – standar ds differ across UAE
- Assignment of Projects / Receivables (with confirmation from paymaster (owner of project) / employer)
- Assignment of sub-contractors’ guarantees
- Assignment of contractors’ all-risk insurance policy
- List of contract(s) in hand and those completed in the past 3 years (project name, value, tenor & percentage of completion)
- Assignment of business contracts (with or without confirmation by the paymaster (owner of project) / employer)
- Assignment of insurance receivables (in case of medical services)
- Assignment of point of sales terminals
- Types of Documents required to be submitted with a loan application.
Assessing collateral requirements
Collateral can be tangible such as cash (cash margins), real estate (property), inventory etc or intangible such as receivables, marketable securities (stocks, bonds, funds), personal or corporate guarantees, standby letter of credit, security cheques etc. The collateral requirements vary on a case by case basis depending on several factors like risk, pricing, ownership structure, type of financial instrument, good balance sheets etc. For example, a SME with a good balance sheet from a reliable auditor can get an arrangement to maintain 25%-30% cash collateral. Therefore, it is important for SMEs to be paying special attention to these aspects and ensure it is thinking of ways to facilitate an appropriate bank borrowing for the business.
Fixed assets of a business are seen as a good form of collateral towards secure lending arrangements. For example, real estate or machinery could be pledged to enter into a loan agreement. The banks are trying to assess the quality of fixed assets to establish if they could be utilized as appropriate collateral.
- Identify the best form of collateral to be presented to a bank.
Is there a need to segregate funds for personal and business use?
Often SMEs use their business funds for personal needs for example, purchasing a car for personal use from the cash generated out of the business. The most common way the small business owners comingle their personal and business funds is by mixing personal and business credit. Often the owner uses his personal credit card to purchase inventory, supplies or small equipments for the business. Under this, the company’s assets are at risk because of the owner’s personal credit and liabilities.
Due to these occurrences, banks critically evaluate the business transactions and related activities, to assess the separation of the company and personal money. Consequently, the business should always aim to eliminate any areas of inconsistency by a clear segregation of personal and business funds. The SME must also be transparent in its working and disclose all relevant information without withholding any information.
Personal financial statement
Do you have a healthy bank statement?
Banks examine bank statements of the business as a means to support the audited statements. It is important for the business to always route its transactions through banks. This practice enables transparency of the business and clarity of operations. The bank statement will reveal the source and use of funds and provides the banker an understanding of the average monthly cash coming into the account. This gives an indication of how well the debt obligations can be met by the business in a timely fashion. Another important aspect is that the banks will try to understand if the business has multiple bank accounts and establish the proportion & nature of transactions happening through these accounts. In such scenarios, the SME must be willing to reveal information about all bank accounts to avoid any information gaps.
Bank reconciliation statement
Why are the preliminary checks undertaken like existence for at least 3 years and audited financial statements?
The preliminary checks are undertaken by the banks as a first step towards evaluating the borrower. Consequently, a 3 year timeframe is considered to be a good period to assess if the SME has been able to establish itself. Also keeping in mind, the skew of expat run businesses with limited fixed assets in the region, it makes it easier for businesses to shut down and leave the country. Due to this very reason, the banks are continually trying to assess the longevity of the business with a minimum threshold of 3 years. In the same context, audited financials are viewed by the lender as a credible source of information to assess the financial performance of a business.
Prepare audited financial statements
Is there a difference between a good and a bad balance sheet?
It is crucial that the SME appoints a good auditing firm, wherein, the auditor thoroughly evaluates the position of the business. The auditor should ensure the preparation and presentation of financial statements as per International Financial Reporting Standards, including International Accounting Standards. In addition, the interpretations of the business transactions are to be captured in line with the International Accounting Standards Board (IASB). For example, the aging receivables must be accurately identified and highlighted in the audited report.
Every auditor should strive to associate the business with the connected risks like liquidity risk, credit risk and exchange rate risks in the most skilled manner. When these aspects are adhered to, the difference between a good and a bad balance sheet is overcome. For example, a good balance sheet from a reliable auditor will be helpful during the discussion of collateral requirements. There are instances where certain banks provide lending on a clean basis, whereby the SMEs provide low cash margins (5% to 10%) with no additional collateral. These arrangements are provided to SMEs that possess healthy balance sheets from a reliable auditor along with proven track record.
Prepare balance sheets that highlight the qualitative nature and requirements of the business.
Banks will assess the SME financial statements.
Several financial documents provide information to banks for business performance assessment. They are the:
Income Statement- Another name for this statement is the profit and loss report; it details the financial results over a period of time. The business revenues and expenses are reported to arrive at the net income. An important indicator is the operating income, which is the income from the regular business activities before subtracting the interest expenses.Balance sheet- Another name for this statement is the statement of financial condition. It discloses what assets and liabilities the business owns.
Statement of cash flows- The cash flow statement classifies all of the company’s cash flows into operating, investing and financing activities. Cash flows are viewed as a better indicator of the business financial strength compared to net operating income.
Statement of owner’s equity- Another name for this statement is the statement of retained earnings. It reports the changes in the owner’s investment into the business over time.
Complete financial statements will help Banks make informed decisions; therefore, it is important for the SME to prepare and maintain these financial statements.
Key ratios that indicate the business financial performance to a bank.
Banks take into consideration various financial ratios to evaluate the financial strength of a company. Financial ratios can provide a bank with key information regarding the ability of a business to repay a loan.
The following ratios are generally considered to be the most important by the bank:
Liquidity Ratios measure how readily a company can meet its obligations.
Profitability Ratios give an indication of the earnings and profitability potential of a company.
Asset Ratios gauge how efficiently a company can change assets into sales.
Debt Ratios indicate how debt-leveraged a company is, and how it can manage the debt in terms of assets and operating income.
- Liquidity Ratios
Current Ratio: Current ratio demonstrates a company’s liquidity and its ability to pay short-term obligations (accounts payables) using its current assets (cash, accounts receivables, inventory etc). Ideally, a lender is looking for this ratio to be greater than or equal to one.
Quick Ratio (Acid Test Ratio): Quick ratio looks only at a company’s most liquid assets and compares them to current liabilities. A higher ratio means a more liquid current position.
- Debt Ratios
Debt to Equity Ratio: Debt to equity ratio indicates the relative use of debt & equity as sources of capital to finance the company’s assets. A lower percentage means that a company is using less leverage and has a stronger equity position.
Debt Service Coverage Ratio: Debt Service Coverage Ratio measures the cash available to meet debt payments, including principal and interest payments. Lenders prefer a high ratio (atleast greater than 2) which indicates that a company has enough cash flow to cover debt obligations.
- Profitability Ratios
Net Profit Ratio: Net profit margin measures profitability after consideration of all expenses including interest and depreciation. The net profit margin shows how much of each sales dollar shows up as net income after all expenses are paid. Higher the ratio, better is the profitability.
Gross Profit Ratio: The gross profit margin is used to analyze how efficiently a company is using its raw materials, labor and manufacturing-related fixed assets to generate profits. A higher margin percentage is a favorable profit indicator.
Receivables Turnover Ratio: The Accounts Receivable Turnover Ratio measures the number of time accounts receivable were turned over during a time period. A higher ratio indicates a shorter time between making a sale and collecting the cash.
For example, a business that has credit sales of 10,000 AED and average receivables of 2,500 AED would have an average receivables turnover of 4, which indicates that the receivables have been collected 4 times during the year. The higher the AR turnover the greater the business cash inflows are. Furthermore, the business extension of credit and collection of receivables is considered efficient.
Payables Turnover Ratio: Accounts payable turnover ratio evaluates how fast a company pays off its creditors (suppliers). An accounts payable turnover ratio measures the number of times a company pays its suppliers during a specific accounting period. Accounts payables turnover trends can help a company assess its cash situation. A high ratio means there is a relatively short time between purchase of goods and services and payment for them. Conversely, a lower accounts payable turnover ratio usually signifies that a company is slow in paying its suppliers.
Inventory Turnover Ratio: The Inventory Turnover Ratio measures the number of times inventory was converted to sales during a time period. It is a good indication of purchasing and production efficiency. In general, the higher the ratio, the more frequently the inventory turned over. You might expect a company with a perishable inventory, such as a grocery store, to have a very high Inventory Turnover Ratio. Conversely, a furniture store might have a low Inventory Turnover Ratio.
Prepare statements with the help of below templates.
- Income statement
- Balance sheet
- Financial model
Are there any irregularities in the repayment of debt in the past?
The bank would look into any irregularities that may have occurred involving the repayment of loan or payables like the instance of a cheque return or loan default, delay in payments to banks etc.
On the same note, the behavioral aspects would also be given consideration such as the level of transparency and the SME’s willingness to provide proof of transactions for any outstanding dues of the business.
Banks are trying to assess the extent of Business Risk
The bank would assess the likelihood of the SME’s inability to meet anticipated profits that are influenced by sales, per-unit price, costs, obsolesces or even the overall macroeconomic environment. An impact on the anticipated profits would hamper the SME’s ability to meet its financial obligations.
Therefore, it is essential that the SME is transparent and provides all relevant information like sales figures, cost estimates, margins etc to assist in the bank’s evaluation process.
Does your business have insurance?
Businesses face several risks like fire disasters, property damage, manufacturing error etc and as a result need appropriate insurance coverage. Insurance coverage helps to protect or minimize the losses during any unforeseen circumstance.
Banks will try to assess the extent of insurance coverage of the business and its assets. In certain sectors banks mandate insurance policies, for instance, trading businesses are expected to assign insurance of stock and manufacturing businesses are expected to assign insurance of its fixed assets like equipment& machinery.
- Be transparent with the bank especially matters relating to irregularities in repayments.
- Identify potential risks impacting your line of business.
- To what extent is your business insured?
How do banks address skip risk?
Skip risk describes the risk of an individual leaving the country with no intention of returning or paying off their outstanding debt. The higher proportion of expat owners in the UAE facilitates this risk. Bankers consider this unique risk as an important factor while assessing the credibility of an SME.
Lenders typically identify the skip risk behavior in two ways. The first is through tracking the behavior of an SME on an existing bank account. The second type of skip indicator is when an SME approaches a bank to which they have no previous relationship.
Lenders look out for the following possible signs of a person skipping the country:
- Any irregularities in the repayment history on a previous debt
- Delay in interest payments on a current loan
- Increasing balance build on the credit cards over a period of time.
- Sudden increase in large cash withdrawals indicating a higher cash usage
- Larger purchases some time prior to the skip, but smaller purchases closer to the time.
In order to tackle the skip risk, banks typically receive a guaranteed cheque from the SME owner for the amount of exposure that he/she has with the bank.
- What signs would a lender look for while assessing skip risk of an SME?
In most cases, the terms of credit are set based on the bank’s perception of business risk and the availability of collateral. SMEs should ensure they fully explain the intricacies of their business during discussions with the relationship officer. The SME can accordingly negotiate the terms such as amount, period of loan, interest rate, collateral or the flexibility of repayments. Furthermore, it is crucial that the SME has a broad understanding of all the available products offered by the bank and the associated costs to be borne by the business.
- Understand the terms of credit to enter negotiations.