More good news

Not in the office today - but nevertheless great to get e-mails on my iPhone from Lloyds that appointments have been booked in the case of each of the two referrals made yesterday to them. They receive from me, with the buyers full authorisation, a precis of the lending proposal along with financial information, so I know they must be looking to lend if they are putting an appointment in the diary expeditiously. The financial news today includes comment on Lloyds returning to profit although growth in the lending book is flat including that to SME's. Some would point to falling demand (namely borrowing to invest in ones business is being deferred to more certain economic periods, hopefully ahead), others to customers paying debt down in this tough financial climate and some to an overly cautious risk approach to lending. In any event I am pleased to see that locally Lloyds are hungry to lend and grow their lending book with good quality propositions, including the use of the Enterprise Finance Guarantee scheme where appropriate.

Finding the right Bankers

It is always interesting to see how different Bankers react to propositions put to them. Lending money has never been a science in my view but more of an art (mixed with technology these days - credit scoring etc!). The art is assessing character and risk. With the latter important element, some zoom in on the risks of the proposition first and foremost and cannot see past them to the positive opportunities that the proposition presents and how the risks can be acceptably mitigated. Others first and foremost seek to understand the full scope of the proposition and whilst acknowledging the risks they are keen to meet the people behind the proposal and try and find a way to mitigate those risks. Whilst the latter Banker may ultimately be unable to lend like the first overly risk conscious Banker, this is at least after fuller consideration. That's the Banker to deal with - not a "yes" man by any means, not any less experienced or qualified, just hungry to deal. At Ernest Wilsons many buyers require finance to purchase businesses and I have the pleasure of guiding them to Bankers like that - ones who are hungry to lend.
I came across one today though, not one of my usual contacts, who lacked the hunger to deal on a proposition of merit. Not to worry, easily placed with another Banker who will grasp with open arms and this initial frustration soon evaporated as later in the day Lloyds TSB again advised two more loans had been agreed for buyers very recently introduced. It is always a delight to speak to buyers who have had such news, as it is often a worrying time for them - will they or will they not be approved for a loan, feeling their life is on hold until this news is received!
I also enjoyed meeting a buyer today, who had done his homework with an excellent proposition and I am sure he will find the Banks queueing up to lend to him - yes that does happen!

The banks are lending!

Great start to my day Friday - two e-mails from Lloyds TSB Relationship Managers saying that they have agreed finance for two buyers one purchasing a Fish and Chip shop the other a Sub Post Office. I know there are many commentators who castigate the Banks for what seems a restricting of credit to small businesses but I have to say that is not my experience, either from my time at Lloyds or since leaving and introducing buyers to Lloyds and other Banks for finance. True the Banks are considering finance applications carefully, back to the "Captain Mannering" banking style of asking the common sense questions and checking thoroughly that the loan is affordable - but we would all be criticising them if they were lending without such scrutiny.
Today one of the Lending Managers at Barclays met a buyer to discuss a loan requirement which to be fair has its challenges! The will to try and "find a way" to help this excellent individual buy the business is so pleasing to see. The Banks do want to lend in my experience to the right person, running the right business, in the right location, with the right cash flow and profitability. Both these Banks are delighted to receive opportunities to lend and long may that continue. I appreciate that this is not the experience of everyone which is unfortunate indeed, but I look forward to helping many more buyers acquire the finance they need to buy the business of their dreams.
The afternoon brought a change in role as I started a series of interviews for a new "Telephone Business Sales Negotiator" as we are expanding our team at Ernest Wilsons. We are always on the look out for outstanding people.