Proper communication goes a long way in developing relationship with anyone and also is a very effective tool to get your work done in the best possible manner. Writing an email / letter to lender(s) and informing them about your request / concern (together with justification) is an art and needs to be properly done. However, it has been observed that for an MSME owner & its staff, this is a nightmare. They struggle to write in proper English, with strong justification / supporting and hence have to compromise on their request, at times. Moreover, this also is quite a time guzzler for them.
Thus, to alleviate this problem of MSMEs – we have come up with a unique concept of Letter Writing Template. This template contains a huge Library of various types of sample letters a borrower needs to send to the lender in course of their journey. Such template is already ~90% complete as far as the letter is concerned. A borrower just need to pick up any of the template, as per their need at that moment, make requisite changes by way of filling up few blanks (like name, amount, date, etc.) and eureka – the final letter is ready, in no time.
The final version can then be printed (with / without letterhead) and can be signed and submitted to the lender.
The above Communication Template thus play a crucial role in delivering out proper well drafted official letter in no time and thus gets work done much faster.
Overview
Communication is crucial when communicating with the banks or lenders. We know that any communication is incomplete without the sender being able to deliver it effectively and the receiver comprehending it in the desired manner.
Communication of any form with the banks can be taxing due to the formalities, set patterns, and timeliness involved. When a lender and a borrower exchange information that will lead to a potential decision on how much credit/loan can be given, it includes a complete round-up of the financials of the SME and not just a loan request thereof. Projections, Balance Sheet details, Request Letters, Credit analyses and much more have to be communicated in a set format as per the bank’s discretion. All this may vary from bank to bank and from borrower to borrower depending on the need for the loan.
Here’s when BankKeeping can make this behemoth task a piece of cake to handle. But before we understand how let us look at the various opportunities when an SME/MSME has to communicate with the banks:
Need to Communicate with the Banks for the SMEs
Open Bank Accounts and/or Intimate changes with the SME
There is lengthy documentation required, KYCs need to be filled and verifications to be done by the bank when you aim to start your SME business banking. Whether it is the primary banking for all transactional purposes or simply approaching a new bank for additional facilities. When you add a signatory, change your address, or incorporate a new director, all these need to be intimated to the bank in a prescribed format. Adhering to the timelines within which such information is sent to the bank also forms part of the compliance mandates.
SME Loans and Funding
Every business needs funds either to meet their day-to-day work, for expansions and equipment or simply to pay off the debtors. The SME needs to articulate their business blueprint, plans for the future, and projected growth through a detailed business and financial model to be able to secure the desired amount of loan. Many times these are time bound and the SMEs have to struggle to manage the banking documents along with the daily business and workings of the company. Here, BankKeeping comes to the rescue and facilitates you at each step.
Renewal of Credit and Increase in Limit
The SME needs to negotiate various terms and conditions when requesting renewal of credit facility for the smooth functioning of the business. Brokering a flexible payment term will help manage liquidity better. All these require various letters and documentation to be communicated to the bank. We at BankKeeping can help in drafting such complicated communications effectively. Or you can simply use one of our customizable, readymade templates as per your need and get going without delays and hassles.
Loan Moratorium, Grants, and Subsidies request
The nature of the SME may be such that you are eligible for various grants etc. as decided by the government or as offered by certain banks from time to time. To avail of the benefits you will have to write to the bank explaining the nature of your work and judiciously aligning your business needs with the available financial products with the banks. This is indeed a huge task to be undertaken by SMEs or their staff due to either paucity of time or banking knowledge. Here again we, at BankKeeping, can enhance your chances of getting timely finance for your business.
Communication Regarding Discrepancy in Interest
Sometimes the interest charged may be higher than what should have been charged. If the SME finds any such discrepancy it needs to inform the bank at the earliest otherwise nothing can be done. The timeliness of the communication is equally important and the letter templates at the BankKeeping Library help you save time by giving you ready-made drafts that can be modified simply by adding a few basic customized information about your company and you are good to go.
Bank Guarantee, Insurance and LoC, etc.
Various business needs require continuous bank support from issuance of Letters of credit to Insuring raw materials, equipment, or even Goods. All these business needs can be fulfilled with the help of the banking partner, but not before a lengthy process of documentation. Here again, you can rest assured that the team of experts at BankKeeping to assist you with your banking communications and forms with our ready-to-use templates.
Building Trust
Regular interactions with the bank with timely updates can go a long way in building mutual trust and hence benefitting the SMEs in the long run. This will help the SME in negotiating better credit terms, getting better bank internal ratings, and building a strong relationship with the banking partners. This in turn will help the SME avail various benefits from the banks’ expansive network, expertise, and commitments.
Conclusion
All the available Communication Templates play a crucial role in delivering properly well-drafted official letters in no time and thus getting work done much faster. It is not just a comprehensive library of letter templates but also reduces the burden of being able to draft the appropriate letters while communicating with the bank without missing out on any crucial information or disclosures thereof.
FAQ’s
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What are Letter Writing Templates?
These are a set of letter templates that an SME borrower needs to send to the bank/lender. These are pre-filled templates that are almost 90% complete and all you need to do is customize them according to your company.
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How do I customize these Letter Writing Templates?
There are a set of blanks within the template that require the SME to fill up their name, account details, etc. Once done the letter is good to go on behalf of the SME.
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How can I get the Customised Letter?
Once completed, you can simply print the customized letter on a plain sheet or use your letterhead for the same.
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Is the letter good to go to the Lender?
Once printed, you can sign and stamp the letter and it is good to be submitted to the bank or any lender. It is always advisable to proofread the complete letter once before printing and submitting to avoid human errors or machine mistakes.
Do not hesitate to contact us if you intend to apply for a loan or are looking at restructuring your loan portfolio. We are just a click away from fostering financial relations between a Business and a Bank, eliminating the hassles, mistakes, and in-competencies thereof.
Focus on your Business; We’ll take care of your Banking needs
Role Of BankKeeping:
The communication with the banks is not limited to these, and neither is the timeline defined for such communication. The need to communicate or use any kind of bank forms can arise at any time during the opening, operations or even shutting down of a business.
We at BanKeeping are a team of experts, who can help you in your day-to-day interactions with the bank and also guide you with appropriate letter writing, form filling and even negotiating with the banks for the loan application or renewal thereof.
Any kind of communication with the banks requires detailed knowledge of the formats, annexures, and how the letter has to be drafted for the different needs of the SME. A simple monthly update as required by the compliances can also be a challenging task for the SME. Owners and staff, may not be familiar with the documentation or may not be able to fulfill these requirements due to paucity of time. If these are not fulfilled on time it may sometimes attract a penalty. To avoid any such unwanted issues you have to look no further. We at BankKeeping are committed to making SMEs have a hassle-free banking experience when it comes to credits and loans. We have dedicated RMs to look into all your banking needs and our special service of ‘Letter Writing Templates’ or ‘Bank Communication Templates’ can help you manage your banking communication with ease.