Lenders will want to see that you have a competent and skilled management team in place, and that you have systems to keep your business on track, and growing.
A strong management team is fundamental to running an effective business.
Factors that a lender will want to consider are:
Key personnel
- Who are they and how well do they understand the business? Not just the day-to-day operations, but a deeper understanding of your industry, your finances and the big picture (your future plans to grow)
- What kind of experience do they bring to the table, and how does it help your business?
- Do you have any gaps in your management team? How do you plan to fill them?
Systems and reports
- Do you have robust systems in place to be able generate reports if the lender requires updated financials and other important information?
Insurance
- Do you have any succession planning in place in case a key team member leaves?
How does this relate to my application?
Show the lender that your business has the support of a strong leadership team, and that you have robust reporting systems in place. This will give them confidence in your ability to keep everything running smoothly – and your ability to pay back the loan!