Banks: Enemy or Partner?
During the Banking Royal Commission, it has at times been a challenge not to see the banks as the enemy, with the farmer often cast in the role of David against Goliath…and not always winning! There has rightly been condemnation of many of the practices exposed through the Royal Commission. Among others, the plight of the agricultural and small business sectors was recognised.
But farm businesses need banks. They provide the financial fuel tank for our farm business engine! The better we work with them, the better we will be at securing farm finance and improving our financial efficiency.
So how do you turn your bank into an effective business partner? One who is on your side, rather than an ‘enemy’ of business?
How do Banks Cover their Risk of Lending?
When assessing any loan application, banks will look to cover the risk of lending to you from both a business and a personal perspective: