Good Customer Outcomes – Leveraging the Market!

  • 23 November, 2018
  • Greg Pierlot

In an environment where there has been a lot of negative press, it is easy to lose sight of the good customer outcomes most brokers achieve on behalf of their clients! The value and balance brokers bring to the bank – client relationship.

For many clients, a key frustration as their business grows and evolves, is the disconnect between their finance structure and:

  • Where they are today
  • What they are trying to achieve.

Business by its very nature is dynamic and demands quick insightful decision making. However, the experience of many business owners is that their finance and banking arrangements lag well behind.

The Business Evolved but not the Banking!

By way of example, a client, who was a very experienced business owner, had become frustrated with his bankers.

He felt whilst his business had grown and evolved, his banking arrangements failed to reflect the changes that occured

Indeed he felt his banking arrangements were hampering his day to day operations.

The challenge presented!

The client engaged The 500 Group and requested we:

  • Review of both his lending and transactional arrangements
  • Seek improved pricing reflective of his business status
  • Simplify his security arrangements including cross linking of security held by the Bank
  • Reduce amortisation requirements to free up cashflow

The Pathway to a Good Customer Outcome!

Finance Proposal

  • Prepared a detailed Finance Proposal that addressed current and future financial performance, benchmarks, business valuation estimates, SWOT analysis, business strategy, key staff etc.

Key Changes Requested

  • Reduced amortization requirements by increasing ‘notional’ loan terms
  • Delinking of related party securities
  • Changed covenants to focus on only key cash flow drivers


  • Submitted a Tender to a panel of Lenders outlining clients full requirements

A Fair and Balanced Tender Process!

We ensured a fair and balanced tender process for all lenders by;

  • Providing the same information to each lender, together with a clear outline of client expectations including timeframes
  • Rating the Bank offers across a number of key factors from 1 to 3.
  • Summarising all the information
  • Presenting our Summary and all the Letters of Offer, to the client at the same time

A Good Customer Outcome Achieved!

As a result of this robust process the client was able to enjoy:

  • A reduction of interest rates of 1% across the board – resulting in significant ongoing savings
  • Extended loan repayment terms improving cashflow by $115,000pa
  • Delinking security held by the Bank providing greater peace of mind
  • The release of two properties previously held as security
  • Reduced levels of ongoing reporting

In addition, our detailed Finance Proposal, which the client got to review before submission to the Banks, helps ensure the understanding of the business and their requirements is built on solid foundation.


This is but one experience which highlights the value of regularly undertaking a full review of your banking arrangements and a robust tender process.

It also does not always involve a change of Banks but ensures that any finance structure is appropriate for the business and truly market competitive.

If you are frustrated with your Bank, and believe they don’t understand your business, don’t hesitate to get in touch!