The royal commission into the banks has shocked a lot of people but sadly, at Power 2, we have not been surprised. We have seen over the years how the banks have become an overcharging, under servicing and uncompetitive boys club.
So this year we have decided to help our clients, to push their bank harder. The banks are desperate for your business as the Royal Commission starts to bite so now is the time to present your case for a better deal. The banks are on the ropes at the moment so it’s your chance to land a few punches.
How can we help
The Power 2 proposition is to help clients submit documents to their existing and other banks and seek a better deal on the rate of interest they pay, merchant fee percentages for EFTPOS facilities, bank fees and rates for equipment finance. Those documents (which Power2 can do for and with the client) include;
- Historic financial statements by year or broken up into months
- Forecast cash flow for the next year by month, quarter or year
- Business Plans to explain to the bank the goals and details of how the business will achieve those goals.
- The security arrangements (eg valuation on properties or businesses used for lending security).
- Integrated client accounts with the ATO (tax office)
- QBCC Assessments
The current issue
The CURRENT issue is that the Royal Commission has found that the banks have taken advantage of customers and loaned too much money to people who can’t afford to repay the loans. So the banks have now slowed lending which they did NOT want to do but the Royal Commission has forced their hand. This has made it more difficult to borrow money which means the lending officers or risk assessment teams inside the banks want to see more detail on business income and expenses as well as personal financial positions. So the banks really WANT TO LEND YOU MONEY but they now have to tick a lot more boxes to justify it to their bank boss.
So in the current environment a client will get the best deal they can by providing extra detail, tested for reasonable assumptions and supported by their accountant. The days of just applying for a business loan over the phone or via a few emails are gone. By doing it properly the client will get a better deal.This is NOT about getting aggressive with the clients bank. But it is about resetting the relationship and shopping the clients lending needs around to the competition. Competition is growing more fierce as a direct result of the Royal Commission and clients should take advantage of this. So if you need some extra experience on your side, click the link and get in touch.