Bespoke Business – Don’t Take No For An Answer, A Case Study
As a self-employed business owner, you need money to grow your business. Depending on your specific business and your plans, you may need a little or you may need a lot. The number one place business owners turn to when they need money is to their bank. But what happens when your bank can’t help?
This happened to my clients recently and I felt I needed to share their story as it is a confronting scenario for anyone who is looking to borrow funds to run or grow their business. Unfortunately for many business owners, it is a familiar story but it’s important to know that there are plenty of options available, should the first not work out.
My clients have been running their business for over 25 years and through hard work and exceptional service, they had built a great business and a strong personal financial position. They had plans to expand their business and build new premises that would allow them to grow but also it would free up their existing assets so they could sell or lease them to create additional income and reduce their debt over the next 2-3 years.
Naturally, they approached their bank where they had been loyal customers for over 28 years. Initially the bank gave them the green light for the new construction however, once the application was prepared, their bank decided that not only could they not borrow the funds to build, they would need to repay all of their existing lending facilities!
This was obviously a shock to the clients and all because of one year’s financials where the business had a slight downturn. So, after 28 years of loyalty their bank had abandoned them.
Luckily their accountant referred them to us and asked us to help, which we did gladly. We were able to find them a new lender that worked with us to ensure not only could they access the funds needed to build a new home for the business but they also offered significantly lower interest rates on all their existing loans, saving the clients thousands in interest.
I believe the most important aspect of this case study for business owners is;
Just because your bank can’t help doesn’t mean there aren’t plenty of other banks and lending institutions willing to accept you with open arms and help fund your goals.
Every lender uses a different method to calculate borrowing capacity and there is often a significant difference between lenders in relation to how much you can borrow. As a business owner, it’s important to understand this as you can use it to your advantage whenever you need to borrow funds.
We work hard to achieve our goals and build a great business. Don’t let your dreams and ambitions be determined by the policy of one bank or lender. Employ your power of choice and leave no stone unturned as you may find something bigger and better.