Three Things: Prepare for Credit Before You Need It

Three Things:

Most owners wait until they “need” more credit to start the conversation with their bank. That’s usually too late.

1. Clean up your financial narrative

Before you ask for a larger facility, make sure your financials tell a consistent, credible story. Lenders are looking for clarity more than perfection. Tie your historical results to what’s actually happening in the business today, and be ready to explain any volatility. If your reporting is delayed or inconsistent, fix that first. It signals risk faster than any number on the page.

2. Show how the facility fits your operating cycle

A bigger line of credit isn’t about capacity—it’s about alignment. Be clear on how cash moves through your business: receivables, inventory, payables. Then demonstrate how the facility supports that cycle. If the structure doesn’t match how you operate, you’ll feel constrained even with a higher limit.

3. Know your covenants before they know you don’t

Covenants aren’t just legal terms—they’re operating guardrails. Understand how they’re calculated, where you have headroom, and what could cause pressure. Walk in already knowing your weak spots and how you’re managing them.

A well-prepared ask leads to better terms, fewer surprises, and a more resilient capital structure.