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Do not lie to your bank. It is not necessary. You may not agree with their rules and regulations but you have a financial responsibility to follow the loan guidelines when you agree to borrow monies from them. If you do not like the current relationship or the terms, improve your bottom line. Increased profits boost your bargaining power since you are a better risk with which to do business. Those profits improve all of the covenants under which you are scrutinized monthly, quarterly and annually from your financial statements. Banks do not like risk so the more you improve profitability your company becomes more attractive to them. It will also help you be able to reduce interest rates towards your liking.
If you do not like your bank, begin to shop for a better one if you can find one. Once you begin lying to the bank’s representatives, you put your firm in jeopardy in the future and you may not be able to go elsewhere for funding depending upon the financial strength of your firm. Improve your bottom line and then you will magically find there are fewer problems with the bank. You may say that you cannot make the profit that you need to but it is not because of your bank relationship. You have other internal problems that have nothing to do with the bank. Focus on those and be honest with the bank. If you explain what you are doing to improve and describe your rationale for how you will raise profits, your bank will be far more understanding than if you lie to them. Being honest with the bank, the holder of that fat note held against your firm, is a great idea.
