When Will a Bank Take Me Back?

We’re often asked: “The pandemic led to my business losing money and my bank asked me out. When will the bank take me back?” Our answer is, “If you do things ‘right’ from the get-go, it might be sooner than you think; and here’s how to do things right:”

  • Keep in touch with the bank and start conversations with two or three new banks.
  • Ask (and understand) the criteria they use to identify bankable businesses (e.g. acceptable leverage, profitability and the history of that; if it’s required for a calendar year…six months…two years, with audited financial statement(s)?).
  • Keep the relationships “warm.” Meet with the banks periodically and show them how you’re doing. Be proactive.

Through these conversations you’ll learn exactly what you need to do, and you should get progress reports from the banks, too, about what will get you back faster. As you’re nurturing these relationships and getting closer to bankability, you should have a sense of which bank(s) will bring you on the quickest.

This process will also help you identify which bank you want. Remember, it’s not all about them wanting you; you need to select the bank that best meets your business needs.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.