Banking Relationships and Debt Management

Why

Why you need active management of your banking relationship

Negotiations with the bank and a company's debt management don't end when the loan agreement is signed — loan covenants and financing terms should be revisited as the company's position changes. Refinancing a company's loan makes the most sense when it's initiated on time, from a position of preparedness, rather than under deadline pressure.

Difference between administering a loan and managing the relationship

Administering means paying installments on time. Managing the relationship means actively shaping terms, covenants and the company's standing with the bank throughout the life of the debt — part of the CFO's mandate, not an administrative accounting function.

Consequences of not actively managing the banking relationship

Terms stay fixed at the level set when the loan was approved, even though the company's position has since improved and deserves better terms.

Signals that you need support

The company has multiple credit lines with different banks, covenants aren't fully clear to the internal team, or a refinancing deadline is approaching.

Common problems

Most common problems we solve

Covenants tracked reactively, only once they're at risk

The internal team has no system for regularly monitoring compliance with contractual obligations.

Loan terms stay unchanged for years

Even though the company's creditworthiness has improved, terms aren't reviewed or renegotiated.

Communication with banks uncoordinated across multiple lines

Each bank gets a different picture, with no single, consistent communication.

Refinancing considered only right before the deadline

Lack of time weakens the negotiating position at the moment of refinancing.

What you get

What you get within the banking relationships and debt management service

Review and mapping of existing debt

A complete picture of all credit lines, terms and covenants in one place.

Covenant-monitoring system

Regular compliance checks, with an early signal ahead of any potential breach.

Banking relationship strategy

Consistent communication and positioning toward every bank the company works with.

Negotiations to revise terms

Seeking better terms when the company's creditworthiness justifies it.

Preparing and leading refinancing

Starting the process in good time, before existing terms expire.

Regular reporting to banks

Communication that builds trust and makes future negotiations easier.

How we work together

Introductory conversation

We understand the existing debt structure and banking relationship.

Mapping and diagnostics

A review of all credit lines, terms and covenants.

Strategy and negotiations

Defining the approach and leading negotiations with the banks.

Ongoing relationship management

Monitoring covenants and maintaining continuous communication with the banks.

Who it's for, and who it isn't

Who this service is for, and who it isn't

Who it's for

Companies with multiple credit lines and banks — A consistent, unified strategy is needed instead of managing each line separately.

Owners who aren't sure whether their terms are still competitive — Terms haven't been reviewed since the loan was originally approved.

Companies approaching the expiry of existing financing — Timely refinancing preparation is needed.

Who it isn't

Companies with no existing debt — For new borrowing, the Loans for Investment and Working Capital service is more relevant.

Situations of an acute liquidity crisis — For those cases, Financial Restructuring is the priority.

Common mistakes

Most common mistakes we see

Monitoring covenants only when the bank asks

No internal monitoring system exists, so a breach is discovered only after the bank has already reacted.

Accepting the same terms year after year

The company's improved position isn't used to negotiate better terms.

Uncoordinated communication with multiple banks

Different banks receive inconsistent information about the same company.

Refinancing initiated at the last moment

Lack of time forces acceptance of the first offer instead of negotiation.

If you recognize two or more of these — it's time to talk.

FAQ

Frequently asked questions

Does this apply only to banks, or to other creditors too?

The focus is on banking relationships, coordinated with other financing sources as needed.

How often should the terms of existing loans be reviewed?

At least once a year is recommended, or after any significant change in the company's business.

Do you monitor covenants continuously or as a one-off check?

We set up a system of regular, ongoing monitoring, not a one-time check.

Does this service also include negotiating a new loan?

Reviewing existing terms and refinancing, yes; new borrowing for additional needs is covered by the Capital service.

When is the best time to start working together on refinancing?

Ideally six to twelve months before the existing financing expires.

Should this be handled by the CFO or the accountant?

The CFO — negotiating terms and covenants requires understanding the company's creditworthiness and strategy, not just administering repayment.

How much does the banking relationship management service cost?

It depends on the number of credit lines and the scope of the engagement. The first conversation is free; we define the fee before work begins.

This service can be engaged individually or as part of an ongoing external CFO engagement.

Learn how the external CFO service works

Want to walk into the conversation with your bank prepared, not caught off guard?

Schedule a call

Loans for Investment and Working Capital Financial Restructuring Financial Reporting and Control