I've had it confirmed from multiple sources that banks are currently not interested in taking on new business where the operator is running split banking relationships.
The banks are seeing examples where clients are getting into trouble, due to circumstances beyond the boundaries of their relationships, and then surprising the bank with the problem. Now wise to this banks are wanting to have control of the client relationship and to have a full picture of all the assets and liabilities, in order to allow them to sufficiently protect their positions.
The trick now for business people is to go against everything they have learned historically and be willing to give the full picture to a prospective lender. Only then, with an ability and comfort that all the risks present in an application are highlighted, will a bank be willing to make a decision to support a new business relationship.
We have a template to assist businesses in pulling together this story if the prospect is too daunting. Let me know and I can send it through....
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