without fail to negotiate the value dates

Go make your accounts to your banker before he asks.

Why submit its accounts to his banker To create a relationship of trust. Take the initiative to present your accounts, is transparency.

Note: your balance, your account and schedule are documents which will be placed in your file in the banker.

The banker abhors the unknown. He likes not be fait accompli. Submit your accounts is a good opportunity to inform, reassure him. In any negotiation, the benefit is more often than who knows take the initiative. Submit your own your balance lets you more free on the choice of the date, place and method. Make sure also that your banker will be a good reading of your accounts, on the one hand by dedicating time, on the other hand ensuring that it will be no interpretation detrimental to the company.Anticipate your needs.

Each year, you must provide an update on the banking conditions that will be applied, even if you don't have a particular need for cash in the short term, for leave to discounts, mobilization of debts. Write black and white banking conditions that are granted to you. For example, it is easier to obtain authorization of discovered when business goes well and thought a priori do not need. Analyze at the same time with your banker management fees, transfer, delivery of effects to the cash... without fail to negotiate the value dates.

Receive it in your business.

Receive your banker in your company so that it can better apprehend him, that he will be acquainted with your close collaborators, he visit your facilities, that you send your products. You, it will be more available, know to be you too, by refusing to be bothered. You remember him the characteristics of your activity, the possible influence of the order of the balance sheet date, etc.

Your banker will including seek to assess if you have funded your capital by capital made permanently available to your company, and if you control your working capital needs coverage acting regularly on your client credit, your credit provider and the level of your inventory.

Attention: the choice of your end date may have significant consequences for the calculation of your working capital requirement. It is therefore preferable to close your accounts at a time where your inventory and your receivables are the lowest. If this is not the case, be sure to make a supplementary explanation to your banker on the unusual importance of your working capital requirement.

Negotiate the interest rate.

If it is a banking term you must negotiate with care, it is the rate of interest of the loans you. A difference of one or two points can significantly change the deal, both from the point of view of your cash and your accounting result. To complete this negotiation, should know that the rate proposed by the Bank is composed of four parts:

-the cost of refinancing of the Bank which varies with the level of interest rates;

-the specific markup: about 2. It depends on the ability of the company to repay its debts;

-the sector increase: about 1. It is variable, depending on your industry and sector-specific risk analysis;

-the cost structure: about 1. This cost corresponds to the overhead of the Bank and its profit margin.

In practice, negotiating deals with 3: 2 of your company-specific markup and 1 of sector increase. You can play!