Wondering how you can better project business finances during difficult and uncertain times? Watch our Ask a Banker video to learn how to prepare for a meeting with your banker to discuss business finances in the wake of COVID-19.
The “Ask a Banker” series features our knowledgeable team of bankers and staff answering your questions in their area of expertise. In this video, Dani Briggs, Senior Vice President, Market Director of Business Banking, shares important tips on how to prepare to meet with your banker and strategies to project finances in 2021.
Readers should consult their own attorneys or other tax advisors regarding any financial or tax strategies mentioned in this article. These materials are for informational purposes only and do not necessarily reflect the views or endorsement of Santander Bank.
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Hi, I'm Dani Briggs market Director of Business Banking at Santander Bank. So my question is, how can I prepare for a meeting with my banker or any other financier? When there are so many uncertainties and my financials are difficult to project. So one way to prepare is to have the impacts of COVID-19 and your business not only well thought out, but written now, your banker will likely want to know that you have a solid understanding of the impact of COVID-19 on your business from many angles, including how it's impacting your customer base, their supply chain, cash flow cycle, operating procedures, and so on. Talk about how you've reacted to the impact and the contingency plans in place. Any plans to diversify your business are any permanent changes you plan to make to your business model as a result of the crisis, for example, virtual appointments, curbside pickup, a new product or service etc. But in addition to the plan changes explain what impact they have on your business's revenue and expenses and profit margins, show an understanding of your fixed costs and the controllable expenses to which you can make adjustments to if necessary. financial projections are difficult to predict in this current environment. So it may be helpful to run through a few different scenarios. For example, you can project out financials as if your business will return to 100% normal levels or permanently reduced to 75%, 50%, and so forth, but be realistic. If you need support gathering this information in a presentable package, reach out to your business banker or a local small business resource in your community who might be able to help you. For more tips and insights to help run your business explore Business First at businesshub.santanderbank.com