Can the price be adjusted to cover the costs and remain competitive' 6. The way an owner manages his or her personal finances is indicative of how the business will be managed. A debt-averse person is not comfortable if their company is highly leveraged. The reverse is also typically true. A bank will look to the personal financial management of the owner as evidence of responsible use of debt.
Most businesses plan to grow over time.
A business either grows or runs the risk of being eliminated by the competition. In some cases, owners have reached the maximum achievable profit. The company that does plan to grow must quickly address the issue of financing. Banks will only be interested in financing growth if it translates into profits. Nearly all bank relationships require timely financial reporting.