Tips for Borrowers

One of our ‘value-added services we provide to our audit and review clients is a snapshot on their companies’ financial health as viewed by lenders. We also present actionable suggestions to assist them in preparation for actively engaging work with lenders to get the capital they need.

The presentation of your company to a lender is critical. In addition to the financial factors we address in our client check-up, we stress the following guidelines:

Build a relationship. Probably the biggest impact you can have on your ability to obtain financing, beyond the obvious financial factors. If a lender is already is familiar with you and your business, he is more likely to be an advocate for you.

Reach out early. Don’t wait until you need money to ask. Your options will be limited.

Consider the lender’s perspective. Find ways to align your goals with the lenders. Win-win solutions always smooth the way to strategic partnerships.

Ask intelligent questions. Don’t guess. What is the lender looking for? How can you best satisfy his requirements? What two-sided solution will best meet your company’s financing challenge? What are other companies doing in your situation?

Create trust. It is the foundation of all credit relationships. If a lender invests time and resources and finds late in the process that you have been less than forthcoming, then the relationship is compromised. Be as transparent as you possibly can.  Provide evidence that you always meet your commitments. Eliminate mistakes in your documents.

Be prepared. Educate yourself. Develop a working knowledge of all your covenants, contracts and credit documents. Do your homework. By demonstrating your working knowledge in the negotiations, you will brand yourself as a serious strategic partner.

Tell A Compelling Story. Present a forward-looking business plan. Create a narrative of your business, illustrating how you have overcome obstacles and solved problems – and how you plan to move forward.

Work with lenders with industry experience. Their understanding of the construction industry will be helpful in structuring financing and maximizing available credit.

Keep your lender informed. When an unexpected event occurs, and they always do, contact your lender as soon as possible. Poor communications are detrimental your financing prospects. Build trust by providing advanced warning of changes in circumstances. This will allow your lender to be as flexible as possible as you work through challenges.

Never forget, cash is king. Your lender is intensely interested in your in-flows and out-flows of cash, your payment history and your customers’ payment history. Demonstrate your understanding and utilization of cash management efficiencies.

Boost your chances of success by partnering with industry experts that are flexible and have enough capital to continue lending in good and difficult times. If your company is well managed and has a clear record of profitable growth, and you present yourself in the best light possible, you will find capital available. Capital is available for well-managed businesses.


The best strategies for business and personal growth and success are specific to your business and personal situation. Your plan must be tailored to fit your unique circumstances. Contact Lanter, Leonardo & Levy for a no obligation consultation on building and preserving the company and wealth you have worked so hard to achieve.

Call Alex Leonardo or Rick Captain today at 561-998-7770

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