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  • Profile photo of KidKid
    Member
    @kid
    Join Date: 2004
    Post Count: 6

    Hi all,

    Well very proud of myself, this is my second comment for the night so its a good start.
    Just wondering has anyone got any comments on banks. Just would like to know if anyone recommends a bank that is good to deal with to maybe having a bad experience. I only ask as I have not had a lot to do with banks and would like to know what other peoples opinions are.

    Thanks guys
    [blush2]

    Profile photo of BofclarkBofclark
    Participant
    @bofclark
    Join Date: 2005
    Post Count: 31

    Hi Kid

    Best thing I ever did was find a bank manager who seemed to have confidence in what I said I wanted to do. This bank manager helped me be creative when seeking money to finance yet another property. Talk to the bank manager ask them what they want to see from you in order to loan you money. I think it is more important to find the right person who works for a bank, any bank. After all what you want is finance at terms you can live with. Does it matter which bank you get that from

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    If you are considering going direct to a bank for a loan, you would be doing yourself a dis-service. The employees can and will only tell you about their own products. This could cost you a fortune in unnecessary interest.

    Regarding bank accounts etc, just shop around as there is so much variation between each bank. I am partial to ANZ due to their excellent online banking. My account does not cost me any fees either as I do all my banking online.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    All banks have their good days and bad days. or all are as bad as each other.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    I don’t think banks are as bad as everyone seems to think these days. I think they are often misunderstood but this should turn around in the near future.

    As many people here know, I have been interviewing for various positions in the finance industry in recent weeks including banks. I was impressed to find out that one particular bank was hiring a whole lot of people to be trained as branch managers with the predominant skill requirements being customer service and empathetic staff management. This should see some excellent changes at the branch level and make managers more approachable.

    I was also informed other banks were doing similar things.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of DazzlingDazzling
    Member
    @dazzling
    Join Date: 2005
    Post Count: 1,150

    Hi kid,

    I use the CBA directly and find they are able to deliver loan products at an interest rate that all broker sourced products are not able to compete with.

    With banks….scale helps.

    I’ve also been told by my Mentor that the NAB is also good, although they stiff him a bit on the ‘line fee’ they charge, which he is actively rectifying now he knows my rate….bit of quid pro quo I suppose.

    Cheers,

    Dazzling

    “No point having a cake if you can’t eat it.”

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Dazzling

    You wouldn’t happen to a mate of Salib’s would you.

    I assure you that the rate of interest you get charged is no different going through a mortgage broker or going directto the Bank.

    Unless of course you want to give us all some actual evidence to proove me wrong.

    Cheers Richard
    richard at castlewhite.com.au
    Email me for details of our Qld wrap CD which gives you a full Installment Contract.

    Richard Taylor | Australia's leading private lender

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    Originally posted by Dazzling:

    I use the CBA directly and find they are able to deliver loan products at an interest rate that all broker sourced products are not able to compete with.

    I would guess you are not familiar with matching policies between banks and brokers. You do realise that by going direct, you obtain no information about other products from different lenders (for specific situations) that leave the CBA for dead? As long as you are happy is all that matters though.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of upandcomingupandcoming
    Member
    @upandcoming
    Join Date: 2005
    Post Count: 22

    I just found this site by accident and decided to join up and post this reply.
    In my view banks are dinosaurs and living in the dinosaur age.
    I was bankrupt (just ending)18 months ago and down to 10cents.I raked up $800.00 and started a company and then raked up $3000.00 to buy stock with.I have grown that company every quarter since.Turnover in the first 2 months of this year alone was $218,000.00.
    At present I have no debt and cash in the bank.Yet do you think I can get finance?

    I wanted to invoice factor but the dinosaurs want 36%p.a AND have a speread of debtors to minimise risk.The hide of them!!!36% (which is what it is.Calling them a fee instead of interest changes nothing) and still want no risk.
    The banks want guarantees yet call it an “unsecured loan”and want 11% for it.EXCUSE me dinosaurs,but how is an unsecured loan UNSECURED if it is guaranteed and if it is guaranteed then how the hell do you get off charging unsecured rates.
    Companies are in trouble because of the internet.I pay no rents,employ no staff,have no debt.I can sell what the others sell for a lot lot less.Hence turnover is increasing yet the dinosaurs cannot see that I am worthy of a loan or an overdraft.
    What a joke!!!

    gf

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    Originally posted by upandcoming:

    I was bankrupt (just ending)18 months ago

    What is to stop you going bankrupt again? The bank might be concerned that if you do, they lose everything. I am amazed that they made any offer at all for unsecured credit. This type of credit is usually the hardest to get (excluding credit cards).

    At present I have no debt and cash in the bank.Yet do you think I can get finance?

    Yes I know you can get finance. It comes down to how much you are willing to pay and its purpose whether you take it or not.

    I wanted to invoice factor but the dinosaurs want 36%p.a AND have a speread of debtors to minimise risk.The hide of them!!!

    They would be taking on substantial risk. The interest rate is reflective of the risk and your credit history.

    The banks want guarantees yet call it an “unsecured loan”and want 11% for it.EXCUSE me dinosaurs,but how is an unsecured loan UNSECURED if it is guaranteed and if it is guaranteed then how the hell do you get off charging unsecured rates.

    A guarantee is just someone stating they are willing to pay that the bank can chase. It is not something they can take and sell to recover their money. Secured credit requires taking a charge over a tangible item. A Director’s guarantee is only taken to enable the bank to chase the individual if they close down the company.

    Companies are in trouble because of the internet.I pay no rents,employ no staff,have no debt.I can sell what the others sell for a lot lot less.Hence turnover is increasing yet the dinosaurs cannot see that I am worthy of a loan or an overdraft.

    I disagree. The internet is an invaluable tool for many companies. I believe companies that get into trouble do so mainly because of inadequate planning. Regarding your internet business, these are a dime a dozen and can disappear just as quick as they start up.

    This all being said, congratulations on coming back from bankruptcy and setting up a successful company. Be patient and the rates will move in your favour.

    Good luck.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of upandcomingupandcoming
    Member
    @upandcoming
    Join Date: 2005
    Post Count: 22

    Originally posted by upandcoming:

    I was bankrupt (just ending)18 months ago

    What is to stop you going bankrupt again? The bank might be concerned that if you do, they lose everything. I am amazed that they made any offer at all for unsecured credit. This type of credit is usually the hardest to get (excluding credit cards).


    I have very little chance of going broke because of my business model and the way I am running it.



    At present I have no debt and cash in the bank.Yet do you think I can get finance?

    Yes I know you can get finance. It comes down to how much you are willing to pay and its purpose whether you take it or not.


    Well I cannot get finance.Maybe because I am of the opinion that my figures speak for themselves.I certainly will not draw up a business plan .So i suppose it is a battle of wills.I could pay 20% and survive.
    —-
    I wanted to invoice factor but the dinosaurs want 36%p.a AND have a speread of debtors to minimise risk.The hide of them!!!

    .


    I wanted to invoice factor but the dinosaurs want 36%p.a AND have a speread of debtors to minimise risk.The hide of them!!!

    They would be taking on substantial risk. The interest rate is reflective of the risk and your credit history.


    RISK?That is why they are charging 36%.The problem is they want to minimise risk and still get 36%.If it was that risky why are there so many factoring companies?


    A guarantee is just someone stating they are willing to pay that the bank can chase. It is not something they can take and sell to recover their money. Secured credit requires taking a charge over a tangible item. A Director’s guarantee is only taken to enable the bank to chase the individual if they close down the company.


    So it isnt unsecured.



    Companies are in trouble because of the internet.I pay no rents,employ no staff,have no debt.I can sell what the others sell for a lot lot less.Hence turnover is increasing yet the dinosaurs cannot see that I am worthy of a loan or an overdraft.

    I disagree. The internet is an invaluable tool for many companies. I believe companies that get into trouble do so mainly because of inadequate planning. Regarding your internet business, these are a dime a dozen and can disappear just as quick as they start up.


    Using the internet to sell household goods is a bit different.
    I sell stuff for $800 that harvey norman sells for $2800 and I can make 40% clear .Who do you think will sell out of stock first?


    I dont care anymore.I was just having a rant.
    I have no debt.I have a good lifestyle.If I did go broke I will owe noone anything.

    I pay cash for everything I want.I pay cash for my stock.
    I could grow it a lot quicker with finance but in 12 months I will move $250,000 worth of stock a month at 25%.I just cannot understand the attitude of the banks or other finance people.
    But i wont budge either.I did it hard and now as far as I am concerned I may as well go it alone.

    gf

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    Originally posted by upandcoming:

    Well I cannot get finance.Maybe because I am of the opinion that my figures speak for themselves.I certainly will not draw up a business plan .So i suppose it is a battle of wills.I could pay 20% and survive.

    You told us you were already offered 36% finance. That means you can get it if you want to pay that much. Regarding your refusal to do a business plan, there is a very old saying… “Business do not plan to fail, they fail to plan!?

    Seeing you need them to help you and they do not need you, I think you should be a little flexible in meeting their requests to approve your application.

    RISK?That is why they are charging 36%.The problem is they want to minimise risk and still get 36%.If it was that risky why are there so many factoring companies?

    No, they are charging 36% because you are even riskier than others who have not been bankrupt. There are a lot of factoring companies because they can charge people 36%. They make good money but have a higher default rate than standard lending.

    So it isnt unsecured.

    You have not outlined any real property that is being offered as security. A guarantee is NOT real property.

    Using the internet to sell household goods is a bit different.
    I sell stuff for $800 that harvey norman sells for $2800 and I can make 40% clear .Who do you think will sell out of stock first?

    Why is it different? What is stopping me from starting up tonight and selling things at 30% clear therefore under-cutting your business? A price war looms and the winner is the one who has done the best business plan and knows how to attract the most business to their website.

    I just cannot understand the attitude of the banks or other finance people.

    They just want to protect their investment and their shareholders. There are rules and policies they must adhere to.

    But i wont budge either.I did it hard and now as far as I am concerned I may as well go it alone.

    If you want external help, you must be ready to budge. It is their money, their rules. Stubborness will not help your business grow quicker.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of upandcomingupandcoming
    Member
    @upandcoming
    Join Date: 2005
    Post Count: 22

    You told us you were already offered 36% finance. That means you can get it if you want to pay that much. Regarding your refusal to do a business plan, there is a very old saying… “Business do not plan to fail, they fail to plan!?

    Seeing you need them to help you and they do not need you, I think you should be a little flexible in meeting their requests to approve your application.


    I think you miss the point and I dont think you understand to be honest.I wasnt offered factoring.I was offered it if I comply with their demands.
    AndI dont need them.While they dont need me I certainly dont need them.I could just grow quicker with help.
    As for starting a business and undecutting me then why dont you try.
    people are going broke left right and centre because they dont understand the game.I started with nothing at a time when exchange rates were unfavourable to importers and I am growing.

    I will survive and I guarantee that in a few years the ones the banks are helping,ie traditional businesses will go under.
    I just bought a container of chairs that sell for $1200 in the stores and sold the lot for $250 each and made a good margin.
    In 6 months I will start auctions in my home town.The mainstream businesses cannot compete and although I am not silly enouhgh to think i will run them out of business I will beat I hurt them.let the banks lend to them,but they may not be in business in a couple of years so they may not be in a position to borrow.
    I can sell musical instruments at a quarter of retail.I have sold more musical instruments in a year than most music shops sell in 12 months and they are established.I can split containers because I have a good network OS and I dont have many warranty issues.
    My business is based on good fundamentals but noonewill look at it because of their policy.So I need to turn cash quick to survive.So that is what I do and the ultimate loser is the competitor who employs staff and pays rent.
    I dont need the banks.I would grow faster with help but I will grow just the same.
    And while I am growing I will more than likely help some other business to the wall .

    gf

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493
    Originally posted by upandcoming:

    I think you miss the point and I dont think you understand to be honest.I wasnt offered factoring.I was offered it if I comply with their demands.

    I don’t think I missed the point at all. You were offered finance that you were unhappy with. You did not make a distinction between factoring and getting a different loan as far as I read. Maybe it is the hour.

    You just stated again that you were offered “it” if you complied with their demands. I don’t know if you know this, but everyone who gets a loan regardless of their situation must comply with the demands of the lender to obtain approval. Why shouldn’t you?

    As for starting a business and undecutting me then why dont you try.

    Because I don’t want to.

    I will survive and I guarantee that in a few years the ones the banks are helping,ie traditional businesses will go under.

    You seem to offer a lot of guarantees. How can you be certain of competitors going under? What is to stop them from commencing a new division to compete with your business just like the major supermarkets did with online shopping?

    They certainly have the buying power, contacts and skill to do so very quickly should they feel threatened. I am certain they have business plans that identify any threat from online vendors and their tactics to stem this threat. That is where business plans are invaluable.

    I just bought a container of chairs that sell for $1200 in the stores and sold the lot for $250 each and made a good margin.

    What is to stop others from doing this?

    …I dont have many warranty issues.

    I consider this a weakness which a business plan would have identified. I would prefer paying a little more for something to receive a warranty backed by an established organisation.

    …the ultimate loser is the competitor who employs staff and pays rent.

    You can’t do everything yourself. You will grow to a point where you need staff or stop growing. You also need to store stock so rent will also be required. Again, a business plan would have identified this.

    Basically, I am trying to convince you to either do a business plan or pay for one to be done for you and you may be pleasantly surprised of the result.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of upandcomingupandcoming
    Member
    @upandcoming
    Join Date: 2005
    Post Count: 22

    You seem to offer a lot of guarantees. How can you be certain of competitors going under? What is to stop them from commencing a new division to compete with your business just like the major supermarkets did with online shopping?

    They certainly have the buying power, contacts and skill to do so very quickly should they feel threatened. I am certain they have business plans that identify any threat from online vendors and their tactics to stem this threat. That is where business plans are invaluable


    Then why dont they do it?


    As for starting a business and undecutting me then why dont you try.

    Because I don’t want to.


    Then why suggest you can?


    I don’t think I missed the point at all. You were offered finance that you were unhappy with. You did not make a distinction between factoring and getting a different loan as far as I read. Maybe it is the hour.

    You just stated again that you were offered “it” if you complied with their demands. I don’t know if you know this, but everyone who gets a loan regardless of their situation must comply with the demands of the lender to obtain approval. Why shouldn’t you?


    I was offered it provided I changed my business plan and increased the number of people I invoiced.
    I certainly am not going to change my direction so a factoring company who wants to be paid 36% can decide he has less risk.I would rather do what i am doing.


    You just stated again that you were offered “it” if you complied with their demands. I don’t know if you know this, but everyone who gets a loan regardless of their situation must comply with the demands of the lender to obtain approval. Why shouldn’t you?


    Because I am not desperate for finance so i can afford to tell them to take a hike.
    But when they ring me at my home at 7 at night I suspect they want to lend to me.There have lending policy and I have borrowing policy.these clash.So the result is I will not borrow and they wont lend.No good arguing about it.


    …I dont have many warranty issues.

    I consider this a weakness which a business plan would have identified. I would prefer paying a little more for something to receive a warranty backed by an established organisation.


    Again you seem to have very little understanding.I never said I dont give warranty.What i said is I have very little warranty issues.


    I dont intend to argue with you anymore but I stand by my statement that banks are dinosaurs.

    Gerry harvey wants the Chinese to float the RMB.WHY????He made a billion dollars with a fixed RMB.He wants it because there are people like me and they are worried.Traditional wholesalers in sydney are falling over every week.retailers are much better.Internet sales are up.Does he think a floated RMB will matter?

    All his stores are franchises.It is not easy for them to go on the internet because they are not one store or business.

    So you keep thinking you are right and I will keep doing what I am doing.I doubt i will ever borrow money and you can keep lending it to the drones that comply with your rules.

    gf

    Profile photo of upandcomingupandcoming
    Member
    @upandcoming
    Join Date: 2005
    Post Count: 22

    You can’t do everything yourself. You will grow to a point where you need staff or stop growing. You also need to store stock so rent will also be required. Again, a business plan would have identified this.

    Basically, I am trying to convince you to either do a business plan or pay for one to be done for you and you may be pleasantly surprised of the result.


    What makes you think i do not have a business plan and why do you assume I need staff?
    If I do have staff they will need an ABN because I have no intention of paying wages.They can work on contract or not work for me.And why do you assume I need a store to keep stock?
    Shops cost rent,staff costs wages.
    If i dont pay those I can sell cheaper than the bloke who does.

    gf

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Ok gf, you seem to be a little all over the place. I will try and clarify one last time…

    I don’t know why big companies don’t take you on right now. Maybe they do not consider you as any real threat. As for me starting up, I was merely trying to point out that ‘ANYONE’ could do what you are doing. It is not a specialised field and it is certainly one that I am not interested in.

    That is your choice as to not changing your plan. If you want the money though, you will need to change it.

    Yes mate. I don’t understand anything. You said you had no warranty issues. If you were suggesting that your goods are of better quality than all other retail stores and respected brands, then I think you are kidding yourself. I think you missed my point that price is not always the most important factor.

    If you think this is arguing, then I feel sorry for you. I thought we were discussing the reasons why the banks were being tough on you and other matters relating to your business.

    To be honest, I don’t think Mr Harvey would give you a second thought. He is one of the smartest and most respected business persons I know. He is an extremely intelligent man. As for floating the dollar, it would make a huge difference in costs of materials and stock and their competitiveness. I think you should look at the impact of this in your ‘business plan’.

    As for ease of going onto the internet, it would take them about 2 days with a good team. Registering an offshoot business and building a website is all that is required.

    I don’t think there is any right or wrong here. There are just differences of opinion. Also, I do not lend money to anyone. I am not a bank or other lender. I don’t know why you are getting so upset.

    As for why I think you don’t have a business plan, I think the following quote answers that…

    “Well I cannot get finance.Maybe because I am of the opinion that my figures speak for themselves.I certainly will not draw up a business plan .”

    Regarding staff, it is a common business practice to put staff on when the business outgrows you. No-one can grow without limit unless they put on staff to assist.

    Regarding staff requiring an ABN, I think you will find yourself in breach of various taxation laws. For example, a secretary that only works for you cannot be classified as a sub-contractor. You will be required by law to pay wages, holiday pay, sick pay, superannuation, etc… That is, unless you want to take the chance of operating outside the law.

    I also never assumed you needed a ‘store’ for your goods. What I did imply was that you will need to pay storage for your goods at some point and unless your home is massive, you will need to pay rent for an office or ‘store’ some time in the future.

    The information I have been providing you was an attempt to try and help you. I have a lot of experience with small businesses and I also have some importing experience. Also, I am very experienced with finance.

    The only way you can get away with not paying storage or rent is if you only order a container after you have received the orders to sell the stock. I don’t see many customers waiting this long for delivery. You will also need to have the container emptied and distributed within a few days or there are costs of leaving the stock in storage.

    I wish you all the best with your business and hope you find the finance you seek soon so you can grow at a much faster rate.

    Good luck.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

    Profile photo of benalibenali
    Participant
    @benali
    Join Date: 2005
    Post Count: 6

    Hi Kid,

    If are looking for finance, an excellent website is “www.interestrate.com.au”
    This site has current data from around 200 lenders, both banks and non banks. You simply choose the loan type, the size of the loan and your state and it will come up with a list of the most competative loan products available. It will also show fees and features of the loan.
    Check it out.

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