Here's a good article by Matthew Nolan to help those currently under siege!
http://smallbusiness.yahoo.com.au/Article/keep_your_financing_options_open
Monday, March 2, 2009
Monday, February 9, 2009
Banks to support Bushfire Victims
As I write this 2 of the 4 Major Banks have press releases on their websites offering support for the victims of Saturday's bushfires. ANZ is to provide a $10,000 grant to customers who have lost everything and $5,000 to those that have lost something. NAb is a little less specific but has a headline of establishing a $1m fund. I don't know if it is just that these are the two Melbourne based banks or whether they just care more - I'll leave that to the reader.
What I do know is that there are thousands of people hurting right now and to have one less thing to worry about, if only for a few months (ANZ provide a 3 month reprive from repayment if asked) will I am sure be welcomed.
What is less obvious is what to do if your business has been swallowed up by fire. In short though I would advise that you phone your bank as soon as practical, and if you are not receiving the answers that you believe you should, then Pearl Finance would be happy to assist you with your bank discussions at no charge to ensure that you get the very best opportunity to rebuild and grow from this horrific and tragic experience.
If you would like to talk through your circumstances, please do not hesitate call Nathan Keating on 0414 517 072.
What I do know is that there are thousands of people hurting right now and to have one less thing to worry about, if only for a few months (ANZ provide a 3 month reprive from repayment if asked) will I am sure be welcomed.
What is less obvious is what to do if your business has been swallowed up by fire. In short though I would advise that you phone your bank as soon as practical, and if you are not receiving the answers that you believe you should, then Pearl Finance would be happy to assist you with your bank discussions at no charge to ensure that you get the very best opportunity to rebuild and grow from this horrific and tragic experience.
If you would like to talk through your circumstances, please do not hesitate call Nathan Keating on 0414 517 072.
Wednesday, February 4, 2009
Business speaks Spanish and Banks speak Portugese...
Imagine the day: You walk into a meeting with your bank and all they can say is "that sounds like a great proposal, we'd be delighted to support you"...
This seems like a pipe dream to most. The usual bank response, especially in the current market, is more usually "Sorry, that exceeds our credit policy" or "sorry, but you don't have sufficient security".
"Bloody Mongrels" you reply under your breath!
The reality is that most business people do not understand how banks think, although quite reasonably think that they can and should - it can't be that hard! Often bankers can't see the opportunity that you are presenting either. Conclusion: Business speaks Spanish and Banks speak Portuguese. They sound the same, but they are actually very different.
Banks have a process to follow, credit managers to impress and politics to endure. This needs to be taken into account with every presentation.
If you are struggling to effectively get your message across to the bank, why not give me a call. We will happily spend an obligation free hour with you to ascertain how you might better communicate your message, or help you to understand why the message will never work!
Contact Nathan
This seems like a pipe dream to most. The usual bank response, especially in the current market, is more usually "Sorry, that exceeds our credit policy" or "sorry, but you don't have sufficient security".
"Bloody Mongrels" you reply under your breath!
The reality is that most business people do not understand how banks think, although quite reasonably think that they can and should - it can't be that hard! Often bankers can't see the opportunity that you are presenting either. Conclusion: Business speaks Spanish and Banks speak Portuguese. They sound the same, but they are actually very different.
Banks have a process to follow, credit managers to impress and politics to endure. This needs to be taken into account with every presentation.
If you are struggling to effectively get your message across to the bank, why not give me a call. We will happily spend an obligation free hour with you to ascertain how you might better communicate your message, or help you to understand why the message will never work!
Contact Nathan
Tuesday, February 3, 2009
Do you have enough Equity in your business?
Banks in Australia have never been particularly excited about lending against cash flow. However in recent years, when bank funding was luxurious and sales departments ran the banks, if a business could demonstrate sales strength and profitability, banks would generally open their arms.
But all good things have to come to an end. With credit now well and truely back in the driving seat, cash flow lending is a big ask. The banks will support strong businesses with secure cash flows, however without a obvious second way out in the way of security the door is essentially shut.
Second way out can come in many forms:- inventory, debtors, property, the personal wealth of directors to name a few. But if the business does not have at least equal amounts of equity on the balance sheet to the amount of debt required from a bank, then the banks are turning their noses up.
There is a school of though that believes that this ratio will only reduce in the near future - ie banks will only lend to say 50% of the equity held by shareholders. For businesses where shareholders have enjoyed the ability to take hefty dividends this is going to cause problems. Especially if those dividends are relied upon to service personal facilities.
If your business is in this position, I would be happy to spend an obligation free hour with you to help you work through how you protect yourself from this potential issue.
But all good things have to come to an end. With credit now well and truely back in the driving seat, cash flow lending is a big ask. The banks will support strong businesses with secure cash flows, however without a obvious second way out in the way of security the door is essentially shut.
Second way out can come in many forms:- inventory, debtors, property, the personal wealth of directors to name a few. But if the business does not have at least equal amounts of equity on the balance sheet to the amount of debt required from a bank, then the banks are turning their noses up.
There is a school of though that believes that this ratio will only reduce in the near future - ie banks will only lend to say 50% of the equity held by shareholders. For businesses where shareholders have enjoyed the ability to take hefty dividends this is going to cause problems. Especially if those dividends are relied upon to service personal facilities.
If your business is in this position, I would be happy to spend an obligation free hour with you to help you work through how you protect yourself from this potential issue.
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