The slick advertising campaigns by banks promoting personal partnerships and easy access to credit are forgotten in the midst of a recession. Bank capital is scarce and, consequently, only those credit applications that stand the most robust of tests are sanctioned.

The challenge for the determined entrepreneur or small business leader is to ensure that their proposition is differentiated from that of the competition. One way of achieving this is to stand in the shoes of the bank manager. To do this it is useful to learn a banking mnemonic: CAMPARI.

C is for character, with the emphasis on the durability of the business and its leadership. How is the character of the business best described? What sort of market is it operating in? How long has it been established and what is its track record? How adaptable is the organisation?

A is for ability. How can the leadership team and senior managers best be described? What is the degree of commercial competence, professional qualifications and delivery of results? How do the human resources policies link with the execution of strategy? How is ongoing professional development encouraged? Are new ideas and innovation promoted? Who are the third parties from whom the leaders get their sense of perspective?

M is for means. What resources are available? What are the net asset figures for both the corporate entity and the individuals who are playing leading roles and how easily accessible are they? Are their assets unencumbered? What contingent liabilities are in existence and what factors are applied to mitigate these liabilities? What value is attached to intangible assets, such as patents and copyrights, and how have these been calculated?

P is for purpose. How will the company's request help it to achieve better profitability, win extra market share, consolidate its position in its existing market or give it access to new markets? What other funding options have been looked at — for example, equity injections — and what is the ratio of debt to equity? How does the gearing ratio look: is the organisation too reliant on debt versus equity and thus overleveraged or overgeared?

A is for amount. How much money does the company need? But bear in mind the difference between term lending — to fund property, plant, equipment or acquisitions - and working capital to finance the typical trading cycle of stock, creditors and debtors. How have the figures been determined and are they supported by realistic cashflow forecasts?

R is for repayment. The underlying concept here is how the business will generate sufficient extra cash from the investment to repay the debt and what are the repayment measures and milestones that the company will be willing to hit? One of the tests that any banker will undertake is to look at the servicing cost of the debt in relation to the loan itself.

I is for insurance. How does the bank get its money back if the proposition goes wrong? This is where insurance comes in, defining the availability of security both in the company and the level of financial commitment on offer from directors and owners. Bear in mind that in a recession, banks will be more security-led than usual and are likely to request personal guarantees, supported or unsupported.

Most banks will have a standard template against which they assess each of their credit applications, so it is worth asking your bank relationship manager how they will be presenting your case to their credit team. Finally, there are three other letters that combine with CAMPARI. These are ICE — interest, commission and expenses, which can be translated as margin, fees and costs. In today's world, everything is negotiable, so do not be afraid to ask tough questions about how these are calculated. Assess whether you are getting the value for money that you would expect from any other supplier. If not, others will give you what you want.

As one senior banker told me recently: “We are still open for business and those businesses that can be open with us, demonstrate robust planning, adaptability and a viable proposition will always get our support.”

Jeremy Rance, previously a senior leader at a large bank, is an independent banking adviser to small and medium-sized enterprises.

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