What goes in a bank review pack

A review pack is the set of documents you send the bank for the annual review. Send a complete, clear pack and the credit officer has fewer questions. The meeting can then be about your plans rather than your paperwork.

The core documents

A gross margin is one enterprise's income less the costs that go up and down with it, before overheads. The letter may also ask for tax returns, stock numbers, insurance certificates and rates notices. Our bank review checklist lists them so you can tick them off.

The covering note

This is the part most farmers skip, and the one we'd never leave out. A credit officer reads a lot of files. One or two pages in plain words saves them time. Cover:

• how the year went against budget, and why
• anything big that changed, such as a land purchase, a dry spell or a new enterprise
• what the coming year looks like, including the lowest month in the cashflow
• where you sit against each covenant
• exactly what you're asking for, if anything

Be honest about the bad parts. The bank will find them anyway, and it's better that it hears your explanation first.

Make the numbers match

Check the pack hangs together. The opening balance in the cashflow should match your bank statement. The loans in the debt schedule should match the balance sheet. The ratios in your note should match the figures you've attached. Small mismatches make a credit officer dig deeper.

Start early

We'd start about six weeks before the due date. The cashflow takes longest, and you may be waiting on your accountant. If you're asking for new money, start earlier still, because a new application usually takes longer than a routine review.

Our debt schedule template and cashflow budget template cover two of the biggest pieces. Our list of questions to ask at your bank review helps you get ready for the meeting itself.