Alex Cochrane
Navigating through challenges posed by high interest rates, severe weather events, the pandemic and market changes can be daunting for our community. Now, more than ever, it is crucial to review your banking arrangements and ensure you are set up in the best possible way.
I understand this terrain can sometimes feel intimidating or unfamiliar, and as such, I would like to emphasise some key points to consider:
Products
Different bank accounts and loans come with varying features and costs. As your needs evolve over time, it is important to assess whether a different arrangement with your bank would be more suitable for you.
Structure
Take a moment to evaluate how your loans and accounts are connected to your business, trust or personal finances. Are they structured in the most advantageous way? It is crucial to understand what secures your lending, and whether alternative options could save you interest or reduce risk.
Interest Rates
To fix or not to fix, that is the question. The decision of whether to fix or float your interest rates, and how to go about it, can be mind-boggling at times. Unfortunately, there is no one-size-fits-all answer. Your choices should align with your plans and your comfort level towards risk.
Compliance
Ensuring that your profile is accurately established and verified at your bank can streamline processes and improve efficiency. It is important to keep the bank informed of any changes and ensure that you meet their requirements. Some lenders may also require regular reporting to demonstrate financial health and good account conduct. Staying on top of your bookkeeping can ensure timely financial reports are generated, not only meeting bank reporting requirements but also assisting in advancing any requests for new lending more efficiently.
Sourcing New Debt
The process of acquiring new debt does not have to be such a gruelling exercise. Whether you are seeking funds for business expansion, asset purchases, cyclone recovery, or any other project, having the right support is essential to put your best foot forward.
Effective communication and providing the necessary information will help you avoid delays and achieve your desired outcome.
Refinancing
If you are contemplating your options or exploring what other lenders have to offer, engaging a trusted adviser can be invaluable. They can compare rates and solutions across different lenders, helping you find the best fit for your needs.
Remember — reviewing your banking arrangements and seeking expert advice can provide you with peace of mind during uncertain times. Here at BDO Gisborne, we are passionate about supporting business owners and the community to feel empowered and confident in their financial journeys. I am here to support you in navigating through these challenges, and ensuring you make informed decisions that align with your financial goals.
■ Alex is a qualified chartered accountant with over 10 years of banking experience. BDO Gisborne are chartered accountants and business advisers. The firm is an independent member of BDO New Zealand and part of the global BDO network.