The Myth of Keeping the Bank Manager happy
As a leasing company, we lose deals as business people do business with their bank just to keep their Bank Manager happy with regards to company loans. The bank manager is still seen as a trusted and respected member of society, an image that has been around hundreds of years.
We know – through years of speaking to companies that wish to borrow money – that companies will prefer to use their bank for a loan just to keep their bank manager happy.
I kept our bank manger happy at Wyse Leasing
When I set up in leasing aged 24, my Barclays Bank Manager said to me I needed to have a pension which I signed up with via the Barclays Pension Advisor. In the small print it said the fees were £4,800.00, my contributions were only £200 per month! My point is clear, I felt obliged to do business with my bank that did our company banking. I was not forced to do this, I just felt that I had to do what the bank manager said to gain his respect.
Are business owners scarred of upsetting their bank manager?
Yes, we speak to companies every day about business loans or leasing where they tell us they will “speak to their bank first.” Now clearly, there will be a lot of instances where banks will win the business as they have a strong relationship with the client, or the bank has helped out in the past and this is a way of repaying the favour. However, business owners tell us they do not want to upset their bank for fear they will not lend to them in the future.
Your bank is just a business with sales targets to hit
Bank managers have sales targets just like the rest of us. They earn money when they lend money. We do not have a problem with good honest competition. But so many business owners would not say to their bank manager, “hey, we are looking at other finance options, you better come up with your best deal.”
The key problems with banks is…
The key problem often with banks is not will they lend the money in the first place, it is how long does it take to sort out and send out an offer letter. Often we will win business against a bank purely as we will don’t ask as many questions or take as long as they do to gain an approval. Please give us a call on: 01494 611 456.