Banks!!!

Feel like abandoning ship, But are they all the same?? Have to keep a business a/c somewhere, IT just makes me MAD!!.

Don't you just harken? to the days when people lived in smaller communities and new the bank manager and decisions were made on your character etc(obviously not if you're dodgey)(perhaps that was only in the movies?).

"Attention, attention all cashiers"..."Number 7350267 is dodgy, I repeat; he's dodgy !!"

Yep i also got sick of the crap I was getting from my bank. They used to be a building society when i first opened an account with them at the age of about 8. Once they became a bank they started with the fees, the service dropped markedly and they couldn't wait for your pay and a written cheque to mistime so they could hit you with the present again fee of $35 back then.

So one day I just went to my work Credit Union and organised to have my considerable mortgage moved over to them, had my pay deposited into there and said so long to banks forever. If more of us did that sort of thing they might start to take notice.

Remember they need us too.....just like leeches need a host....

I know what your saying.!! But the thing is they offered and secured a deal on equiptment ( earthmoving) 12mths previous to this saga ,payments not a drama, Equity in that deal was all their way , and they have just ABOUT FACED!!! .

I sympathize mate, financial dealings are just about the most pathetic, stressful and personal situations we have to deal with. Someone judges you on your financial situation and it's totally irrelevant to your individual situation. And when I say 'someone' I mean a whole bunch of statistics fed into a computer. Yet it decides whether you can start your new business or get the new car or furnish your home or even get a credit card. At the end of the day, you need to use them. About 10 years ago, just before we left Sydney, we approached the NAB, which we had both banked with and have credit cards with, for a loan for the Troopie we ended up buying. We needed this, we needed that, we needed to have a loan record to get a loan. Saying that we had disposable income and saved money was not good enough; we needed a debt to borrow money! At the time we were bringing home $1000 between us and only paid $250 rent (in Bondi, '97).
So, we got finance through the car yard and it cost us more in interest. But we vowed never to give them anything more than we have to. If we ever win lotto we will take our money elsewhere, we stick with them because their fee structure suits us, when they ring us we tell them how we feel. We have taken our credit cards elsewhere LOL

With over 35 years of "service" in the nab, I guess I might have a bit of "inside knowledge". In my opinion it still comes down to the person you're dealing with. There are some proper w@nkers that are employed by all banks. I know more than my fare share. The fact of the matter is some blokes can look at a set of figures (P&L + B/Sheet) and make what they claim is an informed decision about a 'deal'.

I've been to several training courses over the years where one of the things they've done is try to work out what type of personality etc each of us has. Most of the bankers that I've been on courses with (and in general) fit into the "blue" category. The blue category means that are driven by facts and figures and logic. I, on the other hand, belong to the 'green' category (this ONLY relates to this type of 'test'......nothing to do with my political persuasions!!!!!!). The 'green' category consists of people who are more 'touchy/feely' and are not so prone to being guided solely by figures, but more by personality etc. This is very true in my case. I could look at a set of figures for a fortnight and still wouldn't be able to make a decision whether to grant a loan or not. I'm the sort of 'dipstick' who has to get out and see the client's operation first hand and get comfortable with the stature of the person I'm dealing with. By all means, I'll then ask to see some figures. If the figures for the most recent year aren't too crash-hot but previous years have been sound, then it's time to delve a bit deeper and sus-out (sorry, that's a technical term...hahaha) what's caused the downturn. If it's because you're trying to flog digital watches (which are sooooo "eighties"), then it's probably time (pun intended) you changed strategies and looked for a better way to make a quid (without the banks help in all liklihood!!!). If it's simply a case that you suffered because of increased fuel prices affecting your bottom line, then that raises more questions. Why didn't you raise YOUR prices? If it was because you had a certain amount of fixed price contracts, have these now finished/soon to finish? Etc Etc.

I guess I'm starting to rabbit on a bit too much. What I'm trying to get at is that if you are fortunate enough to strike a banker who has the time and inclination to get to know you AND if your business is genuinely worthy of continued support of the organisation, then there is no need for you NOT to get the loan you need.

As I said earlier, there are far too many bean counters in all banks. The nab is trying to get away from this mentality. I can assure you we have seen the most radical changes to policy of my career in recent months........it is the new Board's way of winning back market share etc. Sponsoring the Comm Games, the Auskick program, cervical cancer research, soccer w/cup etc.....they're into everything to try to raise the profile. All that money spent on advertising would be a total waste if they didn't drastically alter the culture within. It's gunna take some of the old farts with horn-rimmed glasses a while to accept the change; but change they MUST.

Okay.....off the soap-box now......time for a Bex and lie-down!!!!

Good luck

Roachie

Must be somethin valuable about the name John R. Did find a bit of a problem with the manager who has just switched to the CBA one gone to Sydney - lovely to look at but do you think she could do the detail of the paperwork. Has gone to NSW now so I can smile again ;-)

Looks like credit unions are a lot more popular than i realised, will have a good look at things today!.

r u the bank manager:)

Sounds like there ALL getting on the bandwagon with these bloody fees.

' cash under the pillow " Mate!.

Absolutley correct, been talking to brokers the last couple of days, looks a lot more positive now, Althought one broker is pursuing my current bank?, interesting to see how that goes??

Cheers Axle.

I know I'm biased (having worked for nab for the past 35+ years); BUT....

Do you remember several years ago when that big fat slob (John Symonds I think his name is) started up the new "Aussie Home Loans"? He bagged the banks BIG time.... Don't deal with a bank he used to say; come and see Aussie.

More recently he's had his big fat mug on the box again, but this time he says things like: "come and see us, we'll find the best bank deal for you". At the end of the TV ad, they display the logos of all the banks that he'll get you a loan with. Now, in my book, that's a bit hypocritical. But, you wanna know the best bit? If you had the chance to study the logo's of all the banks on that ad, you'd see that the red star of the nab does not appear anywhere. You see, nab reduses to pay the commissions they want.

So, when you go to a bloody broker, just be aware that they will find the best deal for THEM!!!! (not YOU). If Bank "A" pays 5% commission and a 0.25% trail for next 20 years (or whatever), why would the broker suggest you take a loan out with Bank "B" which might only pay 3% commission and no trail?

So, go to a broker by all means, but don't assume they will get you the BEST deal for YOU.

Just in closing, think back to what financial institutions were available 30 years ago. Banks were it; and only about 5 of them.

Then the industry got de-regulated and all these new entities came along and "cherry-picked" the most profitable bits of the finance industry to get their teeth into. Can't blame for that. So, they start doing home loans etc. I haven't one of them set up a comprehensive network of rural branches (with the exception of Bendigo Bank, which I happen to admire for their customer-friendly phylosophy). None of these "fringe-dwellers" has set-up an expensive network of bricks and mortar with a strong-room full of cold hard folding stuff (which costs a fortune to maintain.......a business can't invest assets that are locked away in a strong-room).

A lot of people be-rate the banks for what they consider to be exhorbitant profits; billions of dollars a year. What they fail to acknowledge is that there is vast amounts of capital tied-up in the business to make that "huge" profit. Consider this; if you went to a financial advisor and said you had $1,000,000- to invest and the advisor said to you...."no worries mate, I'll get you a return of $15,000- p/a on your funds"........ I reckon you'd laugh your tits off, right? Well, that's about the return on assets that most banks work on.

Okay, time for another Bex and lie down!!!

Roachie .

Appreciate your replys, But!! the bottom line is if we can"t get the support from a company that we have been with for a long time to try and expand assetts, knowing that their is adequate equity their at minium valuations, it leaves us no alternative but to look elsewhere?. otherwise because this bank said no!!we lay down and die!!?? NOT this black duck!!. 1 or 2 bad yrs doesn't mean your business is stuffed especially in the building trade ,look at house prices up &down like a brides nightie. Now I gotta take a bex AGAIN.

Cheers Axle

I take it you're not a big fan of brokers Roachie ;-).

"So, when you go to a bloody broker, just be aware that they will find the best deal for THEM!!!! (not YOU). If Bank "A" pays 5% commission and a 0.25% trail for next 20 years (or whatever), why would the broker suggest you take a loan out with Bank "B" which might only pay 3% commission and no trail?

So, go to a broker by all means, but don't assume they will get you the BEST deal for YOU."

But lets be clear, the big banks rely heavily on brokers to bring in business and the NAB (or Homeside as their mortgage arm is known) is no exception with 40% of new business being broker generated. However, it is true to say that the commissions paid by banks is generally lower than non-bank lenders.

Selecting a broker is no different to selecting any professional or tradesman to do business with. You might have to sift through some rubble before you find a good one who will act in your best interests. BTW, I don't have anything against banks and our broker has set us up with Homeside and CBA in recent years. Just remember that the banks aren't the only players and there are plenty of very viable and very competitive alternatives.

Now what has all this got to do with 4WDriving, camping etc...absolutely nothing LOL!

:o) Melissa

While you fit in their square its not a problem. Move slightley out of it and they just wont budge. taken 20yrs to happen,Its frustrating when it does.!!