Financial Guide for SMEs - SME Corporation Malaysia

Section IV : Managing LendersBankers and other lenders are generallyvery good at providing assistance whenyou are looking for fi nance. However,you should remember that manyhave not run, or been involved in abusiness. While they may have someindustry knowledge, they are notbusiness owners. So if you are seekingdebt fi nance for your business, you needto educate a potential lender about yourbusiness and the industry you are in(in order to help them make a decisionon whether to lend to you and to helpyou decide whether you want to borrowfrom them).Financial Guide for SMEsMany people in businessover estimate how mucha banker knows abouttheir business or industry,and due to past actionsby some banks, they alsocan feel somewhatintimidated. However,if you take the time toeducate your banker, theycan be an asset to yourbusinessIf you take the time to discuss the keydrivers of your business - how sales aregenerated and how you manage yourbusiness on a day-to-day basis - your banker or alternative lender will be in abetter position to meet your needs and to act as an advocate on your behalfwhen you are applying for loans and other services offered.Do shop around. You are also trying to fi nd a lender that can fulfi ll your needs.By developing a solid relationship with your lender, you will benefi t from thesupport that they will provide to your business. Lenders and bankers can begreat sounding boards for new business ideas, and provide insight into whatis happening in your industry, as they will most likely have other customersthat are servicing your industry, region etc.119chapter 7-13 p79-181 Eng.indd 1198/15/11 5:03:01 PM