the adviser logo

Commercial clients want banks to leave them alone: brokers

by Lucy Dean1 minute read

donotdisturb  donotdisturb

Business owners don’t want to be talking to their banks “every five minutes” and are increasingly turning to lenders with “set and forget” policies.

That’s according to Elie Ayoub, owner of Invictus Finance Solutions. Banks aren’t managing their long-term relationships, Mr Ayoub said, and are demanding more of their existing client base “than they do of their new clients”.

Enforced annual evaluations and reviews, regardless of whether a client is meeting the conditions set by the banks, are damaging lender-borrower relationships, he said.

“Our clients are saying literally, ‘we're buying this building, it [the loan] will be into the next 40-odd years. We don't want to be bothered about it every single year. We don't want to go through the motions of getting it revalued… by our lenders. So, find us a lender that as long as we're making our repayments they're leaving us alone’.”

He added that clients with the major banks are disillusioned by the lack of relationship: “If I [as a client] have been there three, four, five or six years, I would've thought that I'm starting to establish a relationship with them, but every year they turn around and there's a new face to us as brokers and therefore to our clients.”

Michael Zaitony of Discover Mortgage and Leasing told The Adviser that many of his clients are also surprised by the price of ongoing fees as well as commercial revaluations every two or three years.

“The ongoing fees with the mainstreamers… range from $125 to $50 in a quarter and when the clients come across and you’ve got to explain all of this to them, they’re quite taken aback.”

[Related: EOFY presents a big opportunity for brokers]

Commercial clients want banks to leave them alone: brokers
TheAdviser logo


small business owner ta

Bulk of SMEs predicting imminent growth: Prospa

This analysis, which is derived from a survey of 511 Australian small businesses from 19 to 26 April, noted that the...

Catherine Mapusua David Hyman Nicola Powell ta

Super for housing scheme is ‘limited’, industry warns

On Monday (16 May), Prime Minister Scott Morrison unveiled a new proposed housing scheme, which would allow first...

ubank 2022

ubank launches new look after 86 400 merger

The neobank formerly known as 86 400 and NAB’s direct-to-consumer lender UBank have officially merged into one...

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more