As the year comes to an end, many of you will have your annual bank review meeting coming up. While these meetings can seem daunting, when used correctly, they can be a great asset that positions your business well with the bank and ensures your financial partnership works for you.

With eight years of experience as a broker and eleven years as a rural financial counsellor before that, I have sat on your side of the table for almost two decades. We know what bankers look for and what helps make these meetings work in your favour.

Know Your Numbers

Before you sit down with your bank manager, you need a clear understanding of where your business is positioned. Your income, expenses and cash flow should be familiar to you, and you should be able to explain any variations or unexpected costs. If you can clearly explain your numbers to your banker, they will be better positioned to support your business’s needs.

If you believe you will need additional assistance this year, whether that is increased working capital or temporary cash flow support, prepare early. A budget that shows what you need, why you need it and how you plan to manage the season goes a long way in showing strong and responsible management. It is better to bring any shortfalls to your banker rather than letting them discover these themselves. If you need any assistance preparing a budget or determining what your cash flow may look like in the new year, reach out to us early so we can have time to provide assistance.

Your review is also a great moment to look closely at your lending structure. If your overdraft is not being paid down or if your loan repayments do not match the seasonal income of your business, it may be time to adjust. Ensuring your lending structure aligns with the way your operation works can help to reduce stress throughout the year.

Tips

• Ask your accountant to prepare updated financial reports so your numbers are accurate.
• Use a budget template to map out your expected income and expenses for the year. We can provide this and support where needed.
• Reach out to us to review your lending structure and confirm your debt is positioned correctly.
• Bring notes that explain anything unusual about your season or financials.

Know Your Commitments

Given the tougher season last year, some businesses may have carryover arrangements with the bank, whether that is lump sum principal payments, temporary overdraft increases or interest-only terms. Before your review, take the time to revisit these commitments so you know exactly what is ahead.

Understanding your upcoming obligations can ensure there are no unexpected payments discovered at your meeting. If you already have concerns about meeting any of these commitments, you should be reaching out to us now. Waiting until the deadline approaches limits your options and increases pressure for everyone involved. We can help you assess your options to find the right solution for you. 

Tips

• Request your most recent letter of offer from your bank to confirm deadlines and conditions.
• Keep a simple list of repayments or arrangements you agreed to last season.
• If anything is unclear, ask your banker or ask us to review it.

Strengthen Your Relationship With Your Bank

A bank review is not just about figures on a page. It is also an opportunity to strengthen the relationship you have with your lender. Banks respond well to clients who communicate clearly, understand their business and plan ahead rather than react late.

Discussing your plans for the season, outlining any challenges you see coming and explaining how you intend to manage them gives your banker confidence in your approach. Strong banking relationships are built on trust, and trust grows through consistency and open communication.

Tips

• Write down your goals and plans for the year and take them to your review.
• Prepare notes on any risks you see coming and how you intend to handle them.
• Read our blog on Better Bank Relationships

Act Early

The strongest theme across every successful review is early action. Just like most people, banks do not really like surprises. Preparing early gives you more time, less stress and a greater chance of creating the outcome you want.

If you notice anything during your preparation that may create pressure later on, reach out to us. Early conversations lead to better solutions and stronger support.

Tips

• Set aside time before your review to prepare your documents and information.
• If you are unsure about anything, ask us early rather than waiting.
• Learn more about how we can help you beat the bank review blues.

Your New Year bank review is an opportunity to reset, plan and make sure your financial structure is working for your business. With the right preparation, you walk into your meeting confident and organised, giving your lender a clear picture of your business and increasing the support available to you.