Financing Tips for Businesses 2022
As we continue to emerge from the effects of COVID-19 on our businesses, I want to reflect on some of the takeaways we can learn from this challenging experience. A great deal of our clients were able to take advantage of PPP loans – during the first round of PPP loans there was almost a panic mentality. Everything was new and no one seemed to be one hundred percent sure how they would work, how long it would take, and if the money would run out before their business got in line for the PPP loan. One of my biggest takeaways from this experience was how important our professional relationships were. Of my clients that had longstanding banking relationships, they were put to the front of the line and were given priority over non-customers of the banks. For those clients that didn’t have solid banking relationships, they were left scrambling trying to find a bank that would administer their PPP loan. During this experience, it occurred to me how important it was to have a solid accountant relationship. Our firm worked tirelessly to help our clients by constantly staying up to speed with the ever changing rules, informing our clients of the opportunities we saw, and making sure we educated them on what was available by calling them and walking them through the process. Some thought it sounded too good to be true, and some were very thankful for the information, but all clients were appreciative of our ability to stay on top of what help was available in a very turbulent time.
Having solid partners on your team may not seem important when life is going well, but we all know that eventually we will face a challenge that we did not expect. In my lifetime, we’ve had the dot.com bust, the unfortunate events of 9/11 in 2001, the financial crisis of 2008, and now the midst and aftermath of a pandemic – let alone the inevitable recessions to navigate through from time-to-time. Being proactive and developing a solid, trusting relationship with your banker, accountant, lawyer, etc. is preparing yourself for the inevitable hard times when you will need a quality team to help you get through. Below is a list of things you can do to help develop strong banking relationship that will establish trust for those unexpected times in life:
Provide requested information to your banker timely.
Provide accurate financial statements to your banker.
Communicate with your banker when business does not go as planned.
Collaborate with your accountant to make sure the best information is being provided that shows the liquidity and capital position to get the best rates and your loans approved.
Your loan officer normally will have to get your loan approved upon renewal or with any new debt. By showing you are on top of your back-office, it will give them confidence you are putting the appropriate amount of attention to what they need to properly do their job. This will give them the ammunition to go to bat for you when times get tough. The one thing I know for sure is there will be another unanticipated event that impacts you and others. Being proactive and prepared will increase your chance of survival and prepare you to take on the next challenge and thrive in your business.
At Baker Milligan, we are passionate about providing accounting and advisory services your business needs to grow and thrive at through any life event – you deserve a partner who’s excited about the future of your business. To book your Free Goal Achievement Call visit BakerMilligan.com or call us at 574.583.7477.
Jeff Milligan, CPA | Managing Partner
Baker Milligan® 2022
