There's no question that, for most businesses in need of cash, the relationship with the bank is the one that matters most. So what do they do to manage that relationship? We surveyed companies across the country with sales of $1 million to $15 million to see how they keep lenders abreast of what's happening in their businesses. A sampling of their responses is shown below.
Frequency of communication
What it sends
How long with bank
MARKETING COMMUNICATIONS Lenexa, Kans.
Controller: weekly; CEO: 3 to 4 times/year
Yearly balance sheet
MORTGAGE AND FINANCIALEncino, Calif.
Every two weeks
Quarterly P&L projections
CFO: monthly; CEO: twice/year
Monthly sales and accounts receivable; yearly balance sheet
MOOSE'S WELDING & CONSTRUCTION Lyman, Wyo.
Both balance sheet and P&L, 3 to 4 times/year
CONTINENTAL HEALTH PROMOTION Richmond, Va.
Every 3 months
Yearly P&L and income statement; new sales information
AC TECHNOLOGY Uxbridge, Mass.
Twice/week by phone; twice/year in person
Monthly sales and expenses; audited annual P&L
-- Researched by Christopher Caggiano and Michael P. Cronin