One of the key factors that banks pay attention to is the financial discipline of the company and the priority of debt repayment.
Why do banks assess debts in the first place
For a bank, a bank guarantee is a loan product. It assumes that upon the occurrence of a guarantee event, the bank will fulfill its obligations for the client, and then demand compensation. Therefore, when considering an application, the bank primarily evaluates the company's ability to meet its financial obligations on time.
Even minor debts to the budget or credit institutions, and even more so systematic delays, dramatically increase the likelihood of failure. Banks proceed from a simple logic: if a company does not fulfill its basic obligations, the risks under the guarantee become unacceptable.
Analysis of the balance sheet when deciding on a guarantee
The key document in the financial assessment is the balance sheet. It reflects the financial position of the company on a specific date and is used to assess the solvency and sustainability of the business.
When analyzing the balance sheet, banks pay attention to:
- the ratio of current assets and short-term liabilities;
- net asset level;
- debt burden;
- the dynamics of indicators for several reporting periods.
Negative net assets, high leverage and low liquidity signal increased risks. In such circumstances, even a formally sound company may be denied a warranty.
Optimizing the balance sheet structure before applying
Before applying for a bank guarantee, it is important for a business to prepare financial statements in advance. Practice shows that even without "cosmetic" measures, performance can be significantly improved through management decisions.
Effective actions include:
- reduction of overdue accounts payable;
- acceleration of accounts receivable turnover;
- abandoning excess and low-liquid assets;
- formation of liquidity reserves;
- retaining a portion of the company's profits to grow its own capital.
Such measures not only increase the chances of a guarantee being approved, but also strengthen the financial stability of the business as a whole.
Signs of insolvency and their impact on the bank's decision
When analyzing documents, banks assess the signs of insolvency, a condition in which a company is unable to fully satisfy creditors' claims. Such signs may be detected even before the start of formal bankruptcy proceedings.
The critical indicators are:
- systematic late payments;
- negative dynamics of cash flows;
- working capital deficit;
- high debt burden in the absence of revenue growth.
The presence of such factors almost always leads to a refusal to issue a bank guarantee, since insolvency directly affects the credit rating of the company and its management.
Insolvency prevention: financial strategies
To maintain access to bank guarantees, it is important for businesses to build a long-term financial strategy. It is based on debt burden management and priority repayment of obligations.
Practice shows the effectiveness of the following steps:
- clear cash flow planning;
- debt restructuring at the first signs of overloading;
- formation of the reserve fund;
- refusal to aggressively withdraw profits;
- control of operating expenses.
Companies that consistently adhere to these principles restore the trust of banks faster, even after difficult periods.
Counterparty verification and risk reduction
Financial stability is important not only for self-assessment, but also when choosing partners. Before concluding contracts, it is advisable to analyze counterparties based on open sources.
The basic checklist includes:
- verification of information in the Unified State Register of Legal Entities;
- analysis of the registration date, address, and management team;
- verification of participation in the registers of unscrupulous suppliers;
- analysis of arbitration cases;
- assessment of accounting statements.
Such verification helps to reduce the risk of cash gaps and problems with payment under contracts.
Bank guarantee, insurance and regulation
An effective practice is to combine a bank guarantee and insurance instruments. Liability and business risk insurance complements the guarantee, covering situations that go beyond the scope of a bank guarantee.
At the same time, the choice of the guarantor bank is of particular importance. The bank must have a valid license and comply with the requirements of the regulator. The reliability of the guarantee is directly related to compliance with regulations and supervision by the Bank of Russia.
Result
Timely repayment of debts is not a formality, but a strategic factor in the financial stability of a business. It creates a positive credit history, increases the trust of banks and opens access to bank guarantees on more favorable terms.
Proper management of balance, liquidity and financial priorities transforms a bank guarantee from an auxiliary tool into a growth resource that allows businesses to scale, participate in large projects and strengthen their business reputation.
