All Banks look to maximise their own profits and unless you are financially aware you can easily end up paying too much. What should I do?
You should review your charges at least once a year and ask the following questions:
Sometimes all it takes is to ask your bank if you can have free banking or a reduction and because you are a valued customer a commercial decision can be made by them. You may have to suggest that you are looking at leaving them because a competitor is offering your business an improved package and this may persuade them to offer you new terms to retain your business. They are no different to you and how you run your business. You would consider reducing your margins on goods and services you supply if you could still make money and you would not want to lose a client unless they were actually costing you money. Your bank manager is no different. Sometime by offering to leave deposit funds with the bank which they can then on lend to make further profits are sufficient to renegotiate your bank charges. The key rule is "if you don't ask you don't get"
Why should I review my facility documentation?
Banks often ask for many conditions of sanction when you first join them and at this time your negotiating position is very weak. It is often a take it or leave it offer so you have little choice but to accept. However, as your relationship develops your negotiating position charges. Very few people think to challenge some of the additional conditions that were first imposed and that is often expensive and worth seeing whether they can be altered. With our help and support we can work with you to take away some of these expenses, leaving more profit for you.
Can you give some examples?
A loan was agreed but specific insurances were needed to support the loan. 12 months later the business was able to demonstrate a profitable trading position so we got the insurances removed and the clients received a refund of £33,000.
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