The fear of many Bankers is that once a Broker is involved, it potentially places the business at risk each time the facilities come due for review. That each review the Broker will “shop the deal around”!
However, such an approach only serves to undermine the Broker value proposition.
The reality is changing Banks is a long process and time consuming. Time most business owners can ill afford.
Certainly, terms and pricing need to remain competitive. But this is something quality Bankers will strive to ensure and with which a Broker can assist.
But, ultimately churn and disrupting relationships isn’t in anyone’s interest, particularly the business owner!
Our experience is that very few business owners regularly change Banks!
In fact, most are reluctant to even consider this until they reach a tipping point.
Even when they have a good relationship with their Bank/ Banker, it is often frustration with policies and processes, or unease with the powerful institution, that are the initial motivating factors.
Price whilst important, is an outcome rarely an initiating factor!
The Opportunity vs. Cost
At The 500 Group we invest a considerable amount of time and effort building relationships with quality Bankers who are a key to our overall value proposition.
However, to work, it needs to be a two-way partnership – one that respects what each brings to the table and extends beyond the initial introduction of the opportunity.
When Bankers and Brokers work in partnership, the ultimate beneficiary is the client – as it should be!
If you would like to learn more call me on 0409 409 310