BLOG: The Eagles Nest


Have you sat down with SME's lately to get their perspective on Canadian financial services' dedication to their job creating engine. I meet with them regularly and there is a bad taste going around about hypocritical lenders which preach priorities and practice impersonal processes. Let me give you a couple examples which came to my attention. An entrepreneur in the commercial construction trades has built a multi-million dollar business in six years employing four dozen and servicing high quality clients such as major colleges plus receiving raving reviews and repeat business. A bank wouldn't give him an operating line, Canada's Business Development Bank want the see financials (no interview) before considering a credit line and a large credit union wouldn't give a straight answer only procrastination.Eventually he got a private working capital loan and has a negative attitude towards Canada's support for entrepreneurs.

Then there's a well known regional auto dealer in a small city with a long heritage in the area. Their new vehicle line is General Motors and their facilities are first class with third generation talent involved as well as the founder's son. They didn't borrow at one time but felt that the should have a million dollar credit line to handle expansion. Financials were provided which were sent by the local officials to the provincial headquarters' credit processors who turned it down! Needless to say another bank jumped at the chance.

In this same region, agriculture loans are also now being handled at arms length i.e. backroom submission preparations sent to central processors for decisions- without getting their boots dirty. Where are the relationship management principles in this cycle? It may be efficient for number crunching and declining business but it is an impersonal service. People make the successful difference in relationship selling/account management but if their hands are tied by ghost approvals perspectives are wrong.

Pat Palmer | Sunday, October 07, 2018 | Trackbacks (0) | Permalink


Recent Posts