Current market conditions have changed the cash flow finance market for accountants and financial planners, making it more difficult to obtain competitive finance packages, Kenyon Prendeville director Alan Kenyon told InvestorDaily.
“These changes include greater focus by lenders on a business’ compliance and there is also far less flexibility in policy interpretation, pricing and loan conditions than 12 months ago,” Kenyon said.
“Timeframes for the assessment of loan applications have also significantly increased due to changing priorities, tighter policy guidelines and increased levels of due diligence.
“Banks are further differentiating their policies as well, so a specific proposal which may not meet the credit criteria of one bank may be perfectly acceptable to another.”
Despite market turmoil and a changed cash flow finance market, it is still possible to negotiate competitive finance packages, Kenyon said.
“To raise cash flow finance the borrower needs to understand each offer that is put on the table, so that they can make comparisons between offers from different banks,” Kenyon said.
“They must also ensure they’re dealing with senior representatives who are able to fully understand and competently articulate the proposal throughout the credit process.”
The professional presentation of all requested information will enable an application to be prioritised, with shortfalls in information resulting in service level agreements being reset each time a request for additional information is made, Kenyon said.
“Another thing to remember is just because a person has been with a bank for a period of time does not mean they should assume that they will automatically be rewarded with preferential terms,” Kenyon said.
