Does he really give a sh*t?
We must throw out the disclaimer - We are not negative towards bankers. We are bankers ourselves. To be more precise, we are the type of bankers who don’t answer to any one bank.
The question we raise is towards certain bank representatives. We see the side of banking that the public doesn’t see. We talk to them and negotiate with them daily…the side that we are exposed to though, is actually the authority, not the banking representative. When you sit with a bank representative, they will attempt to collect your information, do their own preliminary review, then provide positive feedback, saying something can be done (usually prematurely).
They don’t have the experience or understanding of your business or the full underwriting capabilities to give you the answer you require, but some still do anyways. They then pass the file along to an underwriter who takes weeks and weeks to review something that your whole business is typically riding on. When they look at your file, for them it’s all about risk...and by that we mean, their job risk. They need to make sure that they are accountable to their employer, not to you. They aren’t really committed to you completely, so the interest of time doesn’t weigh on their mind, like it does on yours. Their primary interest is job preservation. You can’t really blame them; they don’t understand your business like you do, so therefore, they wouldn’t risk their job or reputation on it. They only understand their own world.
For instance, there is no impact on them when it comes to your timeline and immediate requirement of financing when your business needs it most. Quite frankly, even if there was, their hands are tied because they don’t have the power to approve your request themselves anyways. Generally, there are several qualifying stages and hands your file must pass through before it gets the partial green light. So, how does this benefit you? Well, it doesn’t. It actually slows down the review process significantly, and it gives you a false sense of their ability to help, which puts you in a worse position than if you had a relationship with the key decision-makers directly.
Sadly, many people still think that their bank can pull through for them and truly understands their needs, which has detrimental effects on their business and growth strategy.
If they really cared, they would have a better system to process and deliver something to you, so that you aren’t teetering on the edge. Some bankers need to care way more than they do, but they cannot. They simply have no power or control to give you all possible options available to you. Additionally, even if the banker has your best interests at heart, they aren’t permitted to explore anything past the decline, or even the funding of your loan. It’s not always that they don’t care, it’s that they aren’t allowed to care, past the decision or the transaction. So, most don’t even make the effort.
The biggest mistake people make is thinking their problems are over once they’ve been funded. In actual reality, the important part isn’t the funding event, its actually the support you need after you’ve been funded. Our research and experience have proven that many companies did no better after they were funded, because they weren’t given the tools or support to succeed once they received the injection of capital.
In order to be successful, you need two things. (1) - access to the top-level decision maker at the bank, who is rarely within your reach; and (2) access to resources or services that will ensure you are implementing the capital effectively. The second point is vitally important to ensure prompt repayment, reduced risk to the lender and ensure the growth trajectory, as your projections originally outlined. Henry Ford said it best, when he proclaimed, “You cannot build a reputation on what you say you are going to do”. Implementation and execution are key, so without resources, the money is only part of the equation.
All makes sense, right? So, now that you are armed with information that you cannot ignore, what is your game plan? Well, this is where The UnBankers can help.
The UnBankers has the unique ability to understand both the operations and the finance side of a business. We have started, operated, managed and sold businesses ourselves. Due to this understanding, we push harder than most bankers would, because we understand that time is money. We also have services available that the typical banker does not or is not permitted to offer to the business owner. Lean strategies, operational efficiency, structure and capital preservation are all important tools that a typically “banker” isn’t allowed to help you with, so they don’t ever come up during a discussion with them. These tools are extremely vital when making the capital work for you, and aiding in the reduction of risk.
In the end, access to fast capital is important, but equally as important is having a banker who gives a sh*t, and who is truly in your corner. Reach out to The UnBankers today to explore all services that help you utilize your present and future capital effectively.
By Cameron Gordon