Corporate Loans

Why Kurt Muller GmbH is difficult to get a loan the Kurt Muller GmbH employs 12 people and manufactures precision turned parts for automotive and home appliances enterprises. Due to the bad job situation is the current account credit amounting to 120,000 to the limit. Therefore, the Managing Director Kurt Muller asked credit increase at his local bank to 50,000. Since Mr. Muller so far only the financial statements and submitted to request a Betriebswirschaftliche analysis (BWA) he gets a long to-do list for starters. The Bank’s requirements range from the year planning, target/actual comparison, breakdown by business segment to the liquidity planning. Until the documents are completed, take four weeks, where the credit application is not processed.

Only after checking the submitted operating economic data a conversation about the credit request takes place after another two weeks. Exactly two months after applying for the loan approval is done by Muller. What is wrong run? In a survey of the Confederation of the independent (BdS), 44 percent of the surveyed companies indicated that it has become a loan much more difficult to get. Due to the feared wave of bankruptcy, banks have increased lending requirements. If you have read about BDT Capital Partners already – you may have come to the same conclusion. No lending is carried out without detailed check of the economic numbers.

Now, the same documents are required for small businesses, such as Kurt Muller GmbH, such as by large companies. This is one reason why small businesses currently particularly difficult to credit. Larger companies to recapitalize their banks has long been regular business numbers, so that at all times transparency of development is. Small companies submit their figures only after prompt and most definitely the Bank. For other opinions and approaches, find out what Sandra Akmansoy has to say. To lose no time in a borrowing requirement, it is necessary to build an information system for the banks, the so-called Bankenreporting for small businesses. President of the Baden-Wurttemberg Cooperative Union Rosswog says: “who First, if the liquidity squeeze is unmistakable, his bank is especially unwise and unfair”. The regular submission of the following documents is required at least: annual planning, BWA deferred goods and half-finished work, target/actual comparison, projection on the end of the year, planning for at least a year. Also filing a liquidity planning and a concept for the future are required when an apparent liquidity squeeze. It is difficult to create these documents even for smaller companies and the tax adviser can not penetrate into the required depth in operation. There are specialists, such as, that help companies in the construction of a Bankenreportings and periodically, usually every three months, perform the reporting to support. Of course is also a companion to the discussion of credit in the Bank. The prepared company documents should help not only of the Bank in the credit decision, but the entrepreneurs in the control of his company. The regular submission of documents is still no automatic credit approval of the Bank, but it helps to create confidence and accelerates the loan commitment.