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7 reasons to look for a better business banking relationship!
1) Your bank doesn’t seem to value your business. When you are in the bank or talking with your “contact” – are they really paying attention to you and what you want – or is it just lip service? Too many banks do not really listen to their customers before trying to sell them something. We have many clients who have products and services that they did not ask for or do not fully understand how they work. Do they even ask questions to make sure you are being matched with the appropriate product...or are you just being pushed products that are on their hit list that quarter? A good banker will ask lots of questions to determine how you and your business operates and how they can match / better what you currently have with a tailor made solution.
2) They don’t really know who you are. What distinguishes a bank from another is how they treat their customers. If you are placed in a segment of clients who are massed managed by some call centre based in Adelaide – then it can become very frustrating to deal with someone in a different time zone and place. Naturally finding a bank who local business managers or at least some form of person locally you can deal with on a day to day basis if required is the better option. Also – by using the skills of a good SBS Adviser, you can liaise using that contact point as necessary to deal with lending issues.
3) You don’t really know who they are. If you are being introduced to a new account officer every three months – then this will eventually tick you off. Transactional matters can normally be dealt with smoothly by the appropriate branch staff –but again if you have a small business specialist adviser working with you – they can direct your enquiry to the appropriate bank staff to have the matter dealt with.
4) Your paying too much. Yes – there are differences between the banks. And depending on how your facilities are structured, the products you use and the security you have either offered or could offer – the variance could be thousands each year (and depending on the size of your business – it could be thousands a month!) Gone are the days where you just stay at the same bank because that’s where the business has been for 5 years or its the “family bank”. Believe it or not – but you are pretty much a number on their “set” of accounts.
5) There a lots of ‘extra” fees that were not there last year. Often you are aware of monthly fees that are applicable to your business accounts, however every now and again Banks introduce new fees and charges to maximise their profits from the things businesses need to do – or are used to doing on a daily basis. So it’s important to review and check your records at least annually to ensure your bottom line is not being unnecessarily affected by charges that other lenders have not implemented yet!
6) You are being treated unfairly based on past history or a “personality clash”. I am sure you have heard of heard something similar...”we had a great relationship with XXXX, but he moved on...and we got stuck with XXX who was just painful”. Yes there are actually bankers with personalities – but they are normally promoted and move on to bigger things. So you can either follow them (which is easier said than done) – or put up with the replacement! Operating a Small Business is never a smooth ride, there are ups and downs. And sometimes the downs have an effect on how your business account and your profile with the Bank is managed and priced. It can take at least a full financial year for a bank to “re-assess your risk profile” with them, and meantime you are more than likely paying a premium for the “loading on interest rate” that has been applied to your business and facilities. The good news is that subject to a period of satisfactory conduct and trading results, there will be a lender who would pick your business up at a better rate, potentially saving you thousands!
7) Your provide your home as security but are charged excessive business rates? Often even with property as security, you are charged 2-4% higher than a home loan. We have lenders who will allow up to 100% of the loan amount to refinance business loans or overdrafts at home loan rates! It’s not rocket science, nor is it any riskier – so why are you paying extra?
