32 Questions to ask your bank manager

Written on the 9 July 2014 by Kirsten Lowis

1. What do you know about my business?
2. Have you visited my website recently?
3. How many other businesses do you cover in my sector?
4. What view does the bank have on my sector?
5. Did you last extend a loan to a business like mine? What were the terms?
6. Would it help if I provided you with a detailed Business Plan and Financial Projections
7. On what basis would you extend a loan to my business?
8. Would you access the Credit Agency Report on my business?
9. How do you decide what to lend to whom?
10. Who makes the lending decision?
11. What is the limit of the loans you are personally authorised to make?
12. What is your detailed loan approval process? How long does it take?
13. Do you lend using security on the assets of my business? If not, why not?
14. How do you structure the repayment profile?
15. What sort of overdraft facility could you make available?
16. Do you offer insurance packages?
17. Can you offer any lease financing?
18. What interest rate would you charge?
19. How is this defined?
20. What do you use for base rate?
21. What fees do you charge?
22. Are there any due diligence costs involved?
23. What other costs are involved that I need to know about it?
24. What term do you lend over?
25. Can I fix the interest rate?
26. How often do you require information from me to monitor the loan? What information?
27. What sort of covenants would you stipulate? What are they? Interest cover?
28. Can I repay the loan early without penalty?
29. Is a charge over my business assets sufficient security?
30. Do you ask for a Director’s personal guarantee?
31. Do you ask for security over my house?
32. I have been banking with you for X years, what can YOU do internally to reduce the number of strings attached to any financing?

You can also download a printable version of these questions.