Feedback - The breakfast of champions

Every athlete knows that in order to improve there has to be feedback.... it's the same with raising finance. If you are rejected you really need to understand why and whether or not there is anything you can do in the short term to change the decision.

What was positive about the proposal?

Ask: "what if anything impressed you about the proposal?" - this will provide a platform to build upon
and then: "How could I enhance these positive points when I come back next time".

What was missing from the proposal?

• Be very professional and ask for the key reasons why the finance proposal has been rejected
• Make sure you understand each of the reasons that are given and if you don't understand, ask for clarification
• After you have written down all of the points read them back to the lender to ensure you have fully understood
• Then ask apart from these are there any other reasons that they have not mentioned - this question could uncover any personal prejeudice or misunderstanding about your business or proposal.

 

Action Plan for approval

Ask: "How many of these negative points would I have to fix in order for you to change your decision?"
The classic sales question: "If I fix these points... will you be able to approve or recommend my proposal for approval?"
If he says no, ask him why not and go back and amend the objections to your proposal with the extra objections that have been identified.

Speak to a broker

Explain feedback received from lender and ask if there are any other options other than those provided by initial lender
If he provides any new options consider whether these would be quicker, less costly, more flexible than offered by the initial lender

Make required changes to proposal and/or business model etc
Make new appointment and go back with your head held high.

Part of the series :'If the Bank Says No!

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