You know when you have been banging the drum about something, then someone comes along and says exactly what you have been trying to achieve?
No? Probably because it doesn’t happen very often. But, our thanks to Vince Cable who has come out and endorsed what Lime Consultancy have been pushing for for years!
Commercial Finance Referrals
The Guardian published an article about Lloyds job cuts this week, in it were some quotes from Vince Cable;
“When a bank turns down a small business customer, why don’t they currently refer it to other banks that would offer them finance?”
Well, the answer Mr Cable is that companies looking to borrow also have other bank products. The banks don’t want to lose everything, so they don’t refer things to other banks. A bit like saying if you don’t like all Lib Dem policies then vote Tory, you wouldn’t do it would you Mr Cable?
But, there is a really sensible point being made. The follow up comment was around referrals and this is the one that really grabbed our attention, Vince Cable went on to say;
“Referrals is the next big issue. There is talk about creating a referral exchange, and compulsion is certainly one of the options on the table.”
In summary, if the bank cannot do the commercial finance then why not refer it to someone who can? If the person you are referring things to has no desire to compete for the other products the bank client has purchased from them, then what is stopping them?
Lloyds response hits the nail on the head, a spokesman was quoted as saying;
“All of our clients will continue to have the support of specialist business managers and for our smallest clients, in addition to branch staff, managers based in our central teams,”
Sounds great, but the remaining business managers don’t have the clout or product offering to meet the client’s needs. The need for advice, guidance and professional service is required more with smaller companies. Telephone and central teams just don’t deliver the level of service demanded.
There are loads of quality commercial finance brokers and specialists out there. We, Lime Consultancy, believe we are the best, but the point is that the answer already exists. It is simply time for the banks to use external expertise to meet the client demands they simply don’t want to provide themselves.
By Lime Consultancy
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