An English accent adds at least 30 points to a person’s IQ, and makes the opposite sex swoon. This is a scientific fact (source: Dilbert). It also provides the possibility of work in Hollywood – usually as a villain. Notice in the movie Valkyrie, all the German generals and conspirators are played by second rate British actors - except for Tom Cruise - who is American.

For those not so endowed, there are several routes to self improvement. One can attempt to imitate the English – a route taken by many an Anglophile. This not recommended, as there are so many “tells” waiting to trip up the counterfeit – use of cutlery, where your father went to school, how you pronounce garage etc. Another possibility is to study a Brit Speak directory and become familiar with English terminology – Dosh = Noun, Money.

{Editor: Is there a business point to this story? DK: Yes, it’s a rather clever analogy about communications. Ed: Well, could you get on with it! DK: Absolutely!}

Sometimes, effective communication is as simple as speaking the same language. When you need money, then you have to visit the bank. But a failure to communicate will undoubtedly leave you empty handed. So how can you improve your chances of communicating with your banker like a native? Bankers speak the language of finance… as revealed in your financial statements. If you enter the temple of finance bearing weak, incomplete and hazy financial statements – then don’t be surprised if you leave empty handed. Here are ten tips to speak “bank”.

1. Learn the language – do you understand your balance sheet, know your ratios and growth rates, can you talk about gross and net profit and understand the contribution of your various products to profitability? Or do you at least have a senior advisor who can assist you?

2. Have a presentation prepared. Banks want to see if you are a credit risk. Although it is unfair, they may judge you negatively if you come across as unprepared and without evidence of clear thinking.

3. Make it clear you have costed out what you are spending the money on. Showing quotes and projections can really help – unless it’s $11,000 for a shower curtain.

4. Show them the money. Have you and other investors already opened your wallet? It is fair enough for the bank to say “why should I risk my money - when you are not prepared to risk yours?”

5. Have complete mastery over the numbers. You really must. You must be prepared to justify every single assumption.

6. Present a range of scenarios. You need to demonstrate that even in the worst case; the bank will get its money back.

7. Have a clear vision for the business which extends beyond the life of the loan or overdraft. Banks are more likely to lend to you if you can demonstrate you can have a good commercial relationship with them over a long period of time.

8. Make sure you are not asking them for equity funding. It must be debt funding. You must be able to provide them with a high level of comfort that they are not taking a risk.

9. If possible have an accountant or a competent finance person with you. I realize it is not always possible, but it really will make the bank feel comfortable. A part-time B2B CFO^® has over twenty five years experience and is someone who already speaks “Bank” fluently. They can help you plan and prepare for funding and make sure your financial house is in order.

Call David Kirkup, Partner with B2B CFO^®  on 770 845 6897.