Real time accounting offers many benefits for business owners! It is something we implemented at…
Good Customer Outcome - Poor Structure not a Lack of Intent!
In our experience many business owners would like to reduce their debt! However, often it is the way their facilities have been structured, that makes amortisation difficult to achieve.
This occurs for a number of reasons, often simply because borrowings are added over time to meet specific needs, without a holistic view being taken as to the client’s overall position.
Through the evolution of the borrowings, they can find themselves in “cashflow handcuffs” – wanting to reduce debt but no obvious way it can be achieved!
The Challenge Presented!
For example, we recently worked with a client who ran a long established trading business.
The client had become frustrated with the ongoing reliance on his family home as part of the Bank’s security arrangements.
He also felt what he was being charged was not reflective of his business as it was today and his overall risk.
He was a long-term customer of his Bank, and over 12 months sought assistance of his banker to no avail.
Frustrated, he was introduced to The 500 Group.
The Client Request
The Road to a Good Customer Outcome
Key Changes Requested
Negotiating the Solution!
A Good Customer Outcome Achieved
In addition, as is our usual practice, we provided the client with a copy of the Finance Proposal before submitting it to the Bank to confirm our understanding and strategies were correct.
This is a great example of the power of the market and how a client’s objectives can be achieved, whilst at the same time the Banks risk position is improved.
Ultimately a good customer outcome was achieved, not only for the client, but also the Bank!
It demonstrates what can be achieved by when Brokers and Bankers work together for the benefit of the client.
If you would like to learn more about how The 500 Group may be able to assist, don’t hesitate to give me a call!