Rob
10-26-2009, 05:10 AM
In my blog today (http://www.smallbusinesssuccess.biz/forum/blog.php?b=449) I feature a story about a new service being offered by the UK’s business advisory service, Business Link.
Dubbed the ‘Financial Intermediary Service’, the aim is to provide independent support to small businesses that have been turned down by banks for finance. Business Link will assist in reviewing the proposal and to come up with ways of strengthening it.
The UK’s Forum for Private Business (FPB) has rightly responded by urging banks to support the initiative but then goes on to quote examples from its members of how banks have treated them badly and relationships have broken down.
Coming from a banking background you would expect me to come leaping to the defence of banks but not so … well just a bit! During this crisis banks have undoubtedly panicked and viable businesses have suffered. It’s going to take a while to bring a balance back but entrepreneurs have their part to play as well.
It has always been my hobby horse that SMEs do little to help themselves when approaching banks for finance (which is why I wrote ‘The Secrets of Getting Your Bank Manager to Say Yes’). They turn up with a scrappy piece of paper (sometimes two if you’re lucky!) outlining a few facts about the deal and then expect the banks to fallen over themselves to grant a loan. They may have got away with it during the good times when money was freely flowing but times have changed.
Today, small business owners must present a reasoned and well thought out Business Plan which clearly shows what is needed and why.
SMEs complain that they no longer have a relationship with their bank manager because decision-making has been centralized. I agree but you still have to cultivate a relationship with your manager if he is to understand your business and present your case to the ‘powers that be’. Just as in a marriage, a relationship needs to be worked on if it is to flourish.
What do you think?
Blantant plug … you can find out more about my ebook, ‘The Secrets of Getting Your Bank Manager to Say Yes’ at Small Business Loan Help (www.smallbusinessloanhelp.co.uk).
Dubbed the ‘Financial Intermediary Service’, the aim is to provide independent support to small businesses that have been turned down by banks for finance. Business Link will assist in reviewing the proposal and to come up with ways of strengthening it.
The UK’s Forum for Private Business (FPB) has rightly responded by urging banks to support the initiative but then goes on to quote examples from its members of how banks have treated them badly and relationships have broken down.
Coming from a banking background you would expect me to come leaping to the defence of banks but not so … well just a bit! During this crisis banks have undoubtedly panicked and viable businesses have suffered. It’s going to take a while to bring a balance back but entrepreneurs have their part to play as well.
It has always been my hobby horse that SMEs do little to help themselves when approaching banks for finance (which is why I wrote ‘The Secrets of Getting Your Bank Manager to Say Yes’). They turn up with a scrappy piece of paper (sometimes two if you’re lucky!) outlining a few facts about the deal and then expect the banks to fallen over themselves to grant a loan. They may have got away with it during the good times when money was freely flowing but times have changed.
Today, small business owners must present a reasoned and well thought out Business Plan which clearly shows what is needed and why.
SMEs complain that they no longer have a relationship with their bank manager because decision-making has been centralized. I agree but you still have to cultivate a relationship with your manager if he is to understand your business and present your case to the ‘powers that be’. Just as in a marriage, a relationship needs to be worked on if it is to flourish.
What do you think?
Blantant plug … you can find out more about my ebook, ‘The Secrets of Getting Your Bank Manager to Say Yes’ at Small Business Loan Help (www.smallbusinessloanhelp.co.uk).