Fundamentals of a Healthy Business
29 March 2024
As we have just gone through the financial year end, most people sit down and reflect on their financial performance for the past 12 months and look forward to the year ahead. A useful fact to know is what financiers consider the "perfect customer" to be.
Financiers are not looking for perfection in all aspects, but they are looking to make sure their are no fundamental weaknesses either.
Think about the following key factors in terms of your own company or client base when assessing financial performance. How many boxes would you “tick” below?
Management
- Clear strategic direction
- Experienced management/board
- Engaged/skilled workforce
Financial
- Sound profitability
- Focus on cost control
- Robust cash flow
- Optimally geared balance sheet
- Appropriate banking facilities
Planning
- Timely management of financial information
- Well prepared business plan
Industry
- Competitive advantage
- Stable industry conditions
- Diverse customer base
- Diverse supplier base
Quadrant Advisory has significant banking experience to interpret what banks may be thinking about your client’s financial position.