Why we don’t have to be afraid of our bank manager

My IIB colleague, Siu Ling, has written a great blog on how to get a “yes” from your bank. Her solution – “a well-prepared complete financing proposal package”.

And I am total agreement. But here’s the strange thing. So many of us ignore this excellent advice. To understand why, look at the following typical scenario. I probably have to face it about once a week on average.

When I ask my client what is their situation in the bank account, I am met with a look of pain. Yeah, but how bad, I press. And as I try to drill down, I rarely receive any precise numbers. The client simply does not know, and they do not want to know.

And here in lies the problem. The client begins to lose control. They then become afraid of the bank staff. The next step is simply to try to ignore the bad news. Even less control, and the vicious cycle sets in.

Meanwhile, what is the humble banker thinking? “Please come and talk to me Mr Client and we can sort this out together.”  

As one bank manager once told me, we want people to communicate with us, to tell us of their problems. That way we can resolve issues with minimal pain. Bottom line, we can then ensure that the cash flow of the business will not freeze up!

Surely that’s incentive enough to prepare a financial plan?

Explore posts in the same categories: Business, Israel

Tags: ,

You can comment below, or link to this permanent URL from your own site.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: