BANKING
Part of the day-to-day operations of any business includes its banking relationships. Understanding the nature of these relationships can give you a lot of information about the ability of the business to sustain its operations. This relationship includes the ability of the business to access credit when needed. What is the status of the business’s banking relationships?
Overdrawn accounts and late payments on loans indicate a struggling business and therefore a potentially high-risk investment. Stable businesses tend to retain the same banks for long periods of time while businesses that are struggling financially tend to change banks often. How stable have the business’s banking relationships been, and what were the reasons for any ...
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