When requiring finance to fund ambitious expansion plans, or to cope with short term cash flow problems, small businesses are finding a more welcoming atmosphere and better deals through smaller specialised operations than the traditional route of big banks.
Since the global financial crisis of 2008, the big banks often appear to have shied away from lending money to smaller businesses. Small business loans, for whatever reason, are often perceived to be too risky for the majors to take on, and with fears of a second financial crisis heading our way this situation may not improve.
Market analysts around the world are slashing their growth forecasts, as concerns over the health of the world’s finances are being hit with negative news almost on a daily basis. Turmoil in the Euro-zone, with whole countries on the verge of bankruptcy, and the huge hole in the finances of the United States highlighted by the shenanigans over the debt ceiling at the beginning of August, have served only to push the brake pedal of bank lending to small business even harder. This economic backdrop has led global economic expansion forecasts to be lowered by UBS, Morgan Stanley, and Citigroup.
Indeed, Citigroup has also cut its forecasts for earnings per share growth at Australia’s four biggest banks, saying that the capital buffer rules aimed at preventing another global credit squeeze will inhibit ability to lend and therefore dampen earnings potential.
It is now even more important for customers to build long lasting relations with their bank, and yet it is increasingly difficult for entrepreneurs to get the time to sit down with an advisor and work towards a close working partnership. And when, finally, this does happen, more often than not the bank changes its personnel and the whole process has to start again. For a small business owner looking for a small business loan, this process can be time consuming and costly.
Professional Leasing Services have existing relationships with all the major banks, and their clients are able to take advantage of this. They are able to offer a long term dedicated relationship with their clients, and this means that they can talk to banks from a position of strength on behalf of clients to achieve the best loan or banking solution for you. Of course, not all small finance houses offer this service. Many concentrate on finance and credit facilities only.
But with years of experience behind us, and the advantage of having long lasting client relationships, Finlease is one of those that work for its clients to come to a complete banking solution, which will offer the financial support required in the tough times and for business growth.