What do the latest round of bank closures mean for your business?

Last week brought more bad news for local banking with Lloyds Banking Group announcing the closure of 56 branches this year. But what do the latest round of bank closures mean for your business?

In reality probably very little, as few of those branches will have a resident business bank manager and even if they do, they are so thinly stretched that they can only cater on a personal level to a select few high-income clients.

We aren’t bashing the banks; the fact is that banking has changed over the years and most businesses will only visit a branch very rarely.

Nor are we bashing the banks’ employees; most of them are very talented individuals but have been hamstrung by a system that has focused on consumer banking whilst de-skilling and centralising many aspects of more complex business banking.

But where do these closures leave the many businesses who yearn for a more traditional approach, where you would know your local branch manager; who had discretion to lend based on performance, affordability and ultimately reputation?

There are banks in the UK who have gone back to this personal approach. Each of their customers has a named contact who they can speak to directly. This is refreshing, but they aren’t appropriate for every business size or type.

At Start Point Finance (and the same for many other finance brokers) we still make the effort to come and visit the vast majority of our customers. Not only does this make things easier for you but it also helps us do our job, as we can get a feel for how your business works and understand the problems you are facing.

We then transfer this information into a proposal which is written in the format that a lender wants to see and we use our experience to choose the most appropriate lender for you – often ending up back at a ‘high street’ bank.

We recently developed this idea into a series of short videos based around the theme ‘Would you bank go this far?’.

If you would like to speak to someone who can help your business find the finance you need, call the office on 01548 854334 or email toby@startpointfinance.co.uk.

The megamix of our ‘Would your bank go this far?’ videos is below, watch out for the next series coming soon…

 

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