How a business banking review can save your company thousands of dollars

20th Jun by Neville Whitworth

How a business banking review can save your company thousands of dollars

Lifetime’s Financial Advisers Neville Whitworth and Richard Craven share tips on how your business, in certain instances, could save tens of thousands of dollars a year.

Smart business owners are now leaning on specialist advisers to negotiate improved banking structures. But exactly what does this service entail? Lifetime’s Financial Advisers Neville Whitworth and Richard Craven share tips on how your business, in certain instances, could save tens of thousands of dollars a year.

Best described as a company’s annual financial health check, a business banking review assesses a company’s banking arrangements and requirements, and remains one of the lesser known services available to business owners looking to lower their operational costs and improve their financial standing.

Aimed at medium to large-scale businesses with personal and business borrowings over $1m, a business banking review can help owners avoid overpaying for facilities by comparing needs to what the marketplace can offer, and assist with aligning banking structures to current business goals.

While some bankers see this as their role, these days they often don’t have the time to meet with clients to understand their changing circumstances and banking needs. It’s very common for us to assist clients who haven’t seen their banker in more than two years.

Unlike bankers who only focus on their own bank’s products and rates, specialist business banking advisers have a bird’s eye view of the entire market and prioritise the needs of the business rather than the interest of one particular bank. The independent review assesses a business’ current banking structures including transactional pricing, debt structures, security and covenant requirements, before identifying possible improvements given market competitiveness and opportunities.

Banking forms part of the backbone of a company’s financial structure, so it makes sense to use industry experts to ensure a healthier bottom line.

Here are five reasons your business will benefit from an annual business banking review:

1. It’s a cost-effective way to build your ‘financial team’

Depending on the size of your company, you might not have the budget to employ a CFO to manage the financial nitty gritty involved in an annual banking review. Specialist advisers have decades of experience in the field, and are up to date with the latest industry developments. We also have established relationships with all the banks, making us well placed to create opportunities for saving on operational costs and secure further financing if needed – and our expertise can help expedite processes, saving your company both time and money.

In the last 12 months, we have saved clients more than $1.3m in interest and opportunity costs. Most businesses we review come away at least $10,000 per annum better off. That’s money straight back into their pockets.

2. You’re guaranteed a personalised solution

Every business is different, so we make it our job to understand your business journey, including any strategic changes you might have on the cards.

For one client, their priority wasn’t reducing their transactional or foreign exchange costs, but rather, getting the family home out of the business. The banking review takes into account what’s most important to the client.

3. It will give you peace of mind

As a business owner, there’s a certain comfort and confidence that comes with knowing you have the best banking package the market has to offer. It’s about giving people back the power as the customer when working with banks.

We saved a single client $100,000 simply by renegotiating the terms and conditions on their bank loan, but it was the sense of empowerment that the client experienced as a result that was most impressive.

We saved a single client $100,000 simply by renegotiating the terms and conditions on their bank loan, but it was the sense of empowerment that the client experienced as a result that was most impressive.

4. It might reduce your personal risk

Situations within your business change – you might be on stronger ground than you were two years ago – and so a business banking review provides the perfect opportunity to reassess the current level of security provided.

As specialist bankers, we assess whether the current level of security is still necessary. It can lead to the reduction of business owner risk or the release of personal assets that were initially required to get the business started.

5. It won’t cost you an arm and a leg and will save you money

While business banking reviews will differ based on a company’s particular needs, the first consultation is free and all further costs agreed up front depending on the scope of service. 
For one client, we charged an admin fee to assist her with getting the family home taken out of the bank’s security as well as negotiating reduced interest rates. For another larger company providing more security, updated valuations and restructuring debt saved them several thousand dollars every year. Everyone’s situation is different and a personalised approach can get great results.

 

Neville Whitworth and Richard Craven are business and commercial property specialists for Rothbury, which is part of the Lifetime Group. Their past experience has included senior roles in Business Banking and Commercial Property divisions of several banks. 

Learn More About Business Banking Reviews

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