The problems facing small and medium business, post-GFC, in obtaining bank finance are well-documented. But Business Essentials economist Professor Neville Norman of Melbourne University - himself an adviser to both business and banks - says firms can do a lot more to help themselves. First, by providing more, fuller and better information, and setting out the bad news as well as the good. Monthly cash flow data over the past 3 or 4 years is a good start, supported by a summary of where the business has been and where it's going. Share your plans for product, discount and pricing changes and outline any risks you may face. Offer three sets of business forecasts - Most Likely, Credible Alternative and Credible Optimistic. And provide KPIs, on profitability, growth, financial risk and any environmental or cultural factors at play in your business.
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