Well I have to say that I am noticing a slight change of attitude with the banks. As talked about in Michael Pascoe's article last month we are starting to see some signs of hunger in the banks re actually writing business loans, rather than just pretending to and telling everyone you are, like they have been!
In the last month I've had some good reaction from ANZ to a couple of my deals. Both the deals were good opportunities but both had some slight historical trickiness that would have been used as a good reason not to touch them a few months ago. Followers of this article series will know that I have always spruiked ANZ as they have been most receptive of Pearl clients throughout the GFC, and they continue to do well. Further to this I now have them agreeing to take my submissions at face value for the purposes of issuing indicative term sheets which is great as this will save some time.
NAB are the other bank that I am hanging out with a bit at present. They don't pay brokerage which is a pest as it means that clients that we put there need to administer our brokerage themselves which is a pest for everyone, but they are happy to do it as, to be moving banks, means that we have got them a deal that makes sense to more for. NAB are very keen to build capability internally to enable Business Bankers to have the skills to be able to provide financial performance feedback and guidance to business clients. Whilst this might not be ever client's desire it is a great initiative as it shows that NAB are trying to differentiate their service by having bankers that understand business better.
Both ANZ and NAB are not cheap, but at least they are doing business lending so better to have an expensive loan to take advantage of growth opportunities than not have aloan at all is what I'm telling people.
The rest of the lending that I'm doing at the moment for clients wanting new funding lines is going to non financial institutions, namely Bibby Financial Group, Banksia Financial Group and Octet, all of whom are working really hard to write new business, and all of whom have good products that clients generally like.
In the last month I have also been introduced to Liberty Financial for Debtor Finance and I have to say that the one interaction I had was very impressive. They are very hungry for new business and this shows itself in the speed with which they attend to new applications. To me I am less worried about what the lender charges and more interested in how fast they make a decision, be it positive or negative. Liberty were super fast and I plan to through a few new deals their way this month as a consequence.
The non financial institutions continue to impress in their speed of decisioning relative to the banks and where possible I am trying to avoid the banks for this reason!
Happy banking,
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