For distributors · How to, under 90 seconds
How do I prepare for a financier’s questions as a distributor?
On the buy side the financier looks to you for repayment, so its questions are about your business, your trading with your anchor, and what secures the facility.
In short
- The financier looks to you for repayment, so its questions are about your business and your trading with your anchor.
- Have your registration, tax compliance, trading record and sales record ready.
- Ask back which structure your program uses and what secures the facility.
Why the questions are about you
You carry the obligation, so the assessment leans on your trading history, your business fundamentals and your anchor’s endorsement of you: more than a supply-side case does. That makes it harder, and pretending otherwise would waste your time.
Have these ready
Your registration and tax compliance, current. Your trading record with the anchor: orders, invoices and how you paid them. Your sales record, showing how fast stock turns into cash. What you can offer as security, and what is already charged elsewhere. A plain answer to how each drawing will be repaid on its date.
Ask these back
Which structure your program uses. What is reported to the credit reference bureaux. What secures the facility. What happens on the day after a missed payment.
The readiness check turns this into a gap list you can act on, in the order worth closing.
Next in this track
How do I keep a revolving limit from turning into a problem?