Intense competition between the banks is making it easier to get the best banking deal and loan terms for your business.
The current unstable financial climate is creating greater competition between the banks,with many now offering discounts, switching offers and cash incentives to bring in new customers.
According to Refunds Direct chairman Robert Graham, banks are most interested in securing lending accounts with their customers. For business customers this means it’s now cheaper and easier to switch banks and get the loan terms they’re after.
Here are Refunds Direct’s tips for getting a better banking deal:
1. Understand your current terms
Know the costs, fees and charges and interest rates of your loan contract to determine if it is right for you.
2. Think about what you want or need from your bank
Make a priority list of business needs you require from a loan. Research conditions such as features, rates and access to funds.
3. Research and shop around
Do your own research or get help from a mortgage broker or referrer.
4. Get multiple bank offers in writing
Get ‘conditional offers’ from various banks so you can compare with lenders.
5. Compare the offers to your priority list
Make sure the loan offer gives you what you need to benefit your business.
6. Ask for even further discounts
Go back to banks and tell them what it will take to secure your business with them. If you don’t ask you don’t get.
7. Select then switch or stay
Make a decision between switching or negotiating a new deal with your existing lender. Check your loan terms every few years.
