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LucasArthur
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bb1, post: 270092, member: 53375 wrote:
Jason great answer, but I think you have been out of the banking world to long, banks no longer look at partnerships with your average small business, they look at where best to rip us off, we have a royal commission which shows that.
I raised a formal request to my ”business partner” 3 months ago, silence so far, my physical branch seems to have a new manager almost on a weekly, possibly daily, basis, last time I spoke to one, they said that last week they were working in a factory, but someone ran out of the bank while they were walking past and asked if they would like to be a manager. Yes we did have ”business partners” back when I was just starting out, but now some 40 plus years later, that doesnt apply.

Howdy BB1,

Respectfully disagree on this.. think you have been out longer .. IMO, relationships through the hard times are more important that the good!

What is important is the relevant touch points you create within the institutions and understanding how to navigate them with integrity and efficiency.. Personally, i have NEVER spoken to a branch manager when i am trying to achieve a level of commercial banking solutions.. Sadly, managers are not well versed in commercial lending (unless you come across one cross trained or was previously in commercial) or products as it has differing legal ramifications and requirements and even processes, and as such Branch Managers are trained in what the majority of their customers are – that being retail lending and deposit skill sets.

My inference is purely around building relationships, creating long term positive influences within an institution you can work with moving forward (each of the 4 pillars run differently and geared for differing clients) and build on that… Your history makes a difference… Your engagement and ability to get to the right person is the biggest battle, most try retail lenders for commercial interactions and this is where you get people coming to the forums saying things like ‘i just got a personal loan for my new business venture, as the banker told me its easier’ – this is completely against both Bank policy and Commercial Lending Policies.. You actually sign contracts saying its not to be used for commercial use :(

We recently engaged a bank for some assistance, post Covid with little objections.. Furthermore, it will also depend on the strength of the client.. The history and the ability to succeed.. This is why i asked about how they are operating, if they are operating and so forth as this history is also important.. Sole trader, has no bearing on this as its still based on the individual…

If you are a worthy customer, and operate your business with integrity and have cash flow (positive meaning potentially profitable) with historical data (within the institution of choice), your chances of gaining some form of assistance (dont be unrealistic) is vastly improved.

As with any bank conversations, the merit of the customer will enhance or hinder the level of discussion.. Both financially and maturity.. Those that approach a bank with very little or none of those, are also the ones that come to the forums indicating banks are unwilling to help – a bank is NOT a charity… a bank is a financial institution ‘gambling’ with assessment on the merit of the opportunity. During times like this or like GFC, things are tighter, harder, more hurdles and more tasks to tick off to do things – but again, if you are in good stead, you are still a valuable asset to a bank.. It may be stacked in the banks favour, but it is their (well shareholders) money to protect….

Partnerships are formed for a prosperous outcome, sadly times have changed.. its vastly faster paced through the development of online ecomm, easier shipping (generally, just not at present) from overseas suppliers (also cheaper) and so forth.. This has created many people that think they are a business simply by drop shipping items, or investing $500 in a generic item from OS (not pointed at OP) that they feel will make them the next billionaire… Its created a generation that feel they can become independently wealthy without having to work – and actually, before they have even bought there first product.. This has an on-flow effect with the entire supply chain, from freight forwarders, retailers, wholesalers and yes BANKS… These ‘business’ owners feel they are entitled (sound familiar) to get access to what you and i have worked hard to achieve and support.. This is not the case… Rarely have i seen the association between todays current retail entitled individuals to entitled business owners, but i sadly think it is there.

But Bert, i appreciate the banter.. hope you enjoyed the war and peace rebuttal :)

Jason