Introduce some competition

How competition can change decisions
Banks know that the majority of their customers stay with them for long periods and are loathe to swap banks due to the hassle factor.
Sometimes this can lead to complacency when it comes to applications which are 50/50.

One of our clients was initially rejected for funding from his high street bank business manager. He approached us to try to secure funding elsewhere. We were able to secure funding with another high street bank and then his original bank manager said he thought he would be able to match the new offer by taking the competitive bid "upstairs".

So by taking your application to another bank or specialist lender it can change the dynamics straight away.

Ways of introducing competition

• Approach another bank yourself ideally via a referral
• Use the services of a business finance broker
• Search the internet to find an appropriate lender.

Benefits of competition

• May be able to use alternative bank quote to take upstairs to superiors
• Protects you from being fully exposed to one lending source
• Competitive rates and terms
• Project successfully funded when original bank rejected your proposal.

For better rates and terms

• Even if your bank does agree to fund your application by shopping around it is possible to find better rates and more flexible terms.

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

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