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The Banking Environment

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05 / Oct / 2011

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The Current Banking Environment

All the major banks are currently out there knocking on doors looking for new customers and lending opportunities.

Sure, it’s a little more difficult in the current climate to get the money, but if you present a good case then they want to talk to you.

Everyone should take some comfort that lending criteria is stricter and the banks are assessing risk a lot closer – we don’t want a return of the times when anyone and everyone could lend as much as they wanted for whatever purpose.

There are some great opportunities to be had in the market at the moment, whether it be in business or investing. Now is the time to renew that relationship with your bank manager.

The bank will asses you on the security on offer and your ability to repay, however they are also taking other important factors into account, such as:

– your experience

– their knowledge of you and that experience

The person behind the deal is just as important, if not more so, than the financial performance.

Depending on the proposal, the bank may also want to see a business plan and forward cashflow projections.

Be prepared before you approach them. Have all of this prepared so that you present well and increase your chances of success. These plans will help stand you in good stead in you business undertakings as well, so will be time well spent.

Now is also the time to make sure you’re getting the most out of your banking relationships.

With so much cash available from all those cautious investors, the banks are being very competitive in order to get new customers and keep existing customers.

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