Previously in this column we looked at risk and how this can determine the cost of your finances. But there is one aspect of risk that we have not yet discussed and that is “bank risk.”
Banks are another supplier (finance, related products and services) to your business. Hence the bank is another one of the business risks you must manage.
A bank is a business like any other. Bank risk to you can manifest itself in many ways. For example, bad management decisions taken at a high level leading to write offs and increased pressure on revenue at a potential cost to customers, culture and attitude to customers, appetite for lending to your industry, knowledge and experience the bank has of your industry, quality and experience of your bank manager, the balance between a bank’s focus on new business generation Vs looking after existing customers. These aspects are fluid and can change over time.
Many of you have been impacted by the consequences of decisions taken by a bank. For example, centralisations and restructures, which have resulted in the loss of experienced bank managers or has left you without a bank manager for long periods of time. Changes in lending policy may place pressure on your business to reduce debt etc. Reduced staff levels and increased workloads have reduced access to bank managers.
At AAA+ Financial Solutions, our purpose is to work with clients to help manage bank risk, both at the time of loan origination and ongoing. We save you time and money by being one point of contact to facilitate several finance approvals if required and then assist with comparing offers for you to decide which is best for your business. It is our job to know and understand available loan pricing in the market, the different lending policies, appetite for lending to your business and the experience levels across financiers.
We have all worked in a variety of banks and have the skills and insights to add value to your banking and finance needs. Combined we have nearly 200 years of banking and finance experience across the residential, commercial and agribusiness sectors.
We deliver a good line of communication between bank and customer. Currently over 50 per cent of residential lending (owner occupied and investment) and 15 per cent of business lending is undertaken with the assistance of a third party such as AAA+ Financial Solutions.
This trend continues to grow as banking and finance becomes more complex due to regulation and tightening of credit policies including loan conditions and covenants. If you think we can be of assistance to you and your business, please call us on (07) 4779 0662.