November 9, 2009
Scared Of Your Bank Manager? Let An Adviser Deal With Self Employed Finances
These days, a bank manager is a bigger bad guy than Simon Cowell. Small business owners or self employed people quake in their boots because they are terrified of what their bank manager will tell them.
A Federation of Private Business member said: "I used to count my bank manager as a personal friend, but now I don't even know who he or she is – the only contact I really have with my bank is generally of the negative variety. It's almost as though there's a cold war between many banks and small businesses.
"I've heard anecdotal accounts of business owners avoiding all contact with their banks because they think it will only serve to disadvantage them. They think that, by getting in touch with their bank, they will up their chance of having their overdraft reduced or interest rates increased."
Limited funding and a lack of competition has meant it is harder than ever for small business people or self employed people to get hold of bank credit. They need loans, overdrafts and mortgages but are being turned down at the first hurdle.
Another FPB member said he is angry over the "really awful" relationship he has had with his bank, saying it has made hundreds of thousands of pounds out of him in charges and interest payments, while constantly putting his finances under pressure.
He said: "Running a business is one thing, fighting with the bank you can do without. They've been really bad at every stage and I've been complaining about it for a long time now, but nothing seems to get done. Banks are not helping small businesses to survive and, when you ask them why they are doing it, they just come up with excuses."
If you need someone to fight your corner, talk to a mortgage professional. It is their job to talk to the bank, to negotiate deals and to create a workable situation where you can get hold of credit. Scared of your bank manager? Then let someone fight your battles for you.
SOURCE: FPB, 20/10/09
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