Business owners don’t want to be talking to their banks “every five minutes” and are increasingly turning to lenders with “set and forget” policies.
That’s according to Elie Ayoub, owner of Invictus Finance Solutions. Banks aren’t managing their long-term relationships, Mr Ayoub told My Business’s sister publication The Adviser, and are demanding more of their existing client base “than they do of their new clients”.
Enforced annual evaluations and reviews, regardless of whether a client is meeting the conditions set by the banks, are damaging lender-borrower relationships, he says.
“Our clients are saying literally, ‘we're buying this building, it [the loan] will be into the next 40-odd years. We don't want to be bothered about it every single year. We don't want to go through the motions of getting it revalued… by our lenders. So, find us a lender that as long as we're making our repayments they're leaving us alone’.”
Mr Ayoub adds that clients with the major banks are disillusioned by the lack of relationship: “If I [as a client] have been there three, four, five or six years, I would've thought that I'm starting to establish a relationship with them, but every year they turn around and there's a new face to us as brokers and therefore to our clients.”
Michael Zaitony of Discover Mortgage and Leasing says that many of his clients are also surprised by the price of ongoing fees as well as commercial revaluations every two or three years.
“The ongoing fees with the mainstreamers… range from $125 to $50 in a quarter and when the clients come across and you’ve got to explain all of this to them, they’re quite taken aback.”
Taking digitisation out of the ‘too hard’ basket for SMEs
By Jason Brouwers
The insanity of consumer expectations
By Jason Dooris
Forget how big you are: always have a start-up mentality
By Simon Larcey