Today you may be allocated a relationship manager. The banks are using this model more so they get a better knowledge of and a relationship with your business.

This is a great service for your business as working closely with a bank relationship manager can lead to faster loan approvals and an understanding between the bank and your business as to what is required to obtain finance.

At FORSYTHS, however we advise that you should ensure that you have two points of contact with your bank.

The reason for this caution is that bank relationships managers will be transferred, go on annual leave, or be on sick leave.

What happens when the relationship manager suddenly changes?

All the shared understanding about your business operations and requirements will be lost. You will have to start from scratch again with the new relationship manager who may know very little about your business.

This relationship manager may have a different style and attitude to your business. This can often lead to conflict when you go to the new relationship manager for finance. You have to start a new relationship and they may ask for records, which you feel they should already possess. You begin to worry your case may be misunderstood and finance withheld.

Explain your concerns to your relationship manager and ask for a second point of contact to be involved with your business.

Ensure your records are up to date and readily available for the relationship manager. This will demonstrate you are on top of your business and have a firm grasp of your financial position.

Compare this with asking the bank for finance and when requested for financials you explain that you have not seen your accountant for 12 months and will need a few weeks to gather information. That will be just for last years’ out-of- date financials. You would then have to arrange for updated projections for the business.

What would your opinion be of that business? Well chances are the bank will have the same opinion.

One final point about working with banks is SHOP AROUND!

At FORSYTHS we can recommend finance brokers who can apply pressure on your bank to obtain a better deal. These brokers are paid by the banks and they simply let your bank know they are eligible to tender for your loan against a variety of other lenders. That ensures they have the opportunity to keep your business while you have the opportunity to ensure you get the best rates.

The other benefit of the brokers is that they will not change and they will have a detailed knowledge of your business. You will not need to keep rebuilding relationships.

Contact FORSYTHS today