Why do bankers treat me harshly in Borrowing money?

We often hear from business owners who feel that the bank does not understand their feelings or treats them harshly when they go to borrow money.

Objectively speaking, the banker has little intention of neglecting the business owner. However, bankers are not 100% aware of business owners’ feelings. So, it is often possible that some managers feel as if they have been ridiculed. In these situations, you need to think calmly and properly consider what you want from the manager’s standpoint.

Business owners say they feel like fools to their bankers because they don’t understand how it feels to run a business.

Bankers are not business owners. Of course, the bank’s internal training is solid, and you will be briefed on the owners’ position. However, there are many things that people do not understand unless they are faced with them from their perspective. Bankers are often salaried employees. They are in a position where they receive a stable salary every day. It is a position in which one’s opinion cannot be accepted. When a person in that position and a manager face each other, there will inevitably be a gap in their awareness.

From the owner’s point of view, I have seen situations where an owner is not very good at judging this person, yet he/she is very strict. Even if the owner does not directly mock the person, they may take it as if they are being harsh in their words due to such a gap in awareness.

This is one of the reasons why people feel like they are being ridiculed.

Respect each other’s position calmly.

As mentioned above, what does a banker, from a manager’s point of view, look like to a banker?

Perhaps the banker asks the owner about the business model and the market in detail, but the manager does not have professional knowledge of the market. Therefore, the manager may only understand the business model with a “hmmm” and try to understand it.

On the other hand, bankers can confidently examine financial statements and make judgments based on their past experience, including how much cash is coming in each month, how much-fixed costs are being incurred, how much profit is being generated each month, how much repayment resources are available from this, and whether the company is eligible to earn money in this regard.

Of course, we evaluate the manager’s business model and enthusiasm as + α. Still, in principle, there are significant situations where they mechanically judge whether this cash flow will likely work.

Even if a business owner feels that the banker has denied him or her in some way, in reality, there are many areas where the banker is considering whether or not to lend money based on a superficial judgment of the numbers rather than in any deep sense.

So, there is no need to be significantly hurt when a manager is in denial.

If you feel uncomfortable on your own, consult with us.

Because of these different positions, it is necessary to be well prepared and understand what the other party wants and what they value.

Otherwise, whenever you borrow money or talk to the bank, you will get hurt, negatively affecting your core business. It is the kind of situation that creates the demand for advice on how to deal with borrowing. There are many things to consider, such as which bank to consult regarding funding needs and how to proceed with the borrowing process.

Please consult with us if you are unsure or have any doubts.

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