FACT 3. Bank managers that understand your business do still exist, but they are not where you used to find them. Find out where they are, and how to access them
Here's a couple of recent examples:
Example 1 - A gentleman contacted me recently who ran an interesting business, a Stud Farm, for Horses, in East Anglia. His current bank had recently removed his senior manager, and replaced him with a 19 year old who had no previous experience of his sector. This gentleman had worked in horse breeding for 40+ years, so you can imagine his lack of appreciation. On top of this, he had wanted his 10 year loan extended on the same terms for another 10 years, with the same monthly repayment, and had been declined.
Having looked at the accounts, it was clear not only that the debt was serviceable, but that he could get a lower interest rate and terms elsewhere. The key driver though, was the quality of relationship with the bank manager.
Having spoken to a national contact, and down to regional, we selected not the closest High Street bank manager, but one of the floating regional senior managers discussed in Fact 1. This contact had over 30 years banking experience and had a portfolio of Stud Farms in the local area. The client was now able to resume a suitable banking relationship, and on better terms than before.
Example 2 - An importer in Kent had contacted me, as his current bank was causing endless delays with providing a loan. The firm had recently won a large supermarket contract and needed working capital for an increase in stock levels. A debt free warehouse which could be used as security for a loan was available. A different bank provided better Loan to Values for this types of business.
Again, we managed to go in at national level, go down to regional and select a mobile Senior Business Manager who was originally from the area, and had import/export clients with warehouses in the same business park.
The point is this: if you know where to look, it is perfectly feasible to find good quality, elite business bank managers who understand your business.
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16 Facts At a click and a glance
1 - Why going into the High Street branch is not the best way to source a commercial mortgage, business loan, or business banking manager
2 - Brand loyalty does not pay. I'll explain why your current bank is not incentivised to offer a better deal
3 - Bank managers that understand your business do still exist, but they are not where you used to find them. Find out where they are, and how to access them
4 - The good news about Business Bank Credit policies: the criteria for assessing businesses is changing regularly, and in the main terms are improving
5 - Why your perfect borrowing history is of little relevance, and why its not personal
6 - You can profit from moving bank, right now, by accessing a much misunderstood fund, as well as improved terms
7 - Different banks like different sectors: what's happened
8 - State-owned banks: an update on where they are
9 - Privately owned banks: an update on where they are
10 - Interest only commercial mortgages: today's marketplace
11 - How a change of mindset can be of great help
12 - Why banks want to know your inside leg measurement, and why it’s not personal
13 - How to work out if a bank will lend to you, right now
14 - Debt service cover: what it means, why its important and the good news coming your way
15 - Why you may need to bank with more than one from now on
16 - If your business does not own property, nor wish to buy one, there are other, new, niche financiers available that can help with your requirements.
About Chris Davidson
Chris Davidson is Managing Director of Discover & Invest Ltd.
He believes passionately in providing businesses with market-leading financial insights that have a positive impact on the bottom line. As a result, Chris helps get the best rates and terms available at any one time.