Of course that knowledge and insight is part of what makes my role valuable to clients, but there are times where the value I can add to a straightforward request is limited, and my advice is simply – go to your bank and ask for the loan. The most likely lender is normally your bank because they know you, they know the business, and they should be motivated to try and help.
The best example of this during the initial Covid period in 2020 was the Bounce Back Loan, which is back in the news this week due to mounting evidence of fraud as loan defaults are uncovering some uncomfortable truths. This story has a long way to go, and the tension between the Treasury and Banks looks like entering a new chapter.
Despite this background it is pleasing to see that most lenders have grasped the opportunity within the Recovery Loan Scheme wrapper to continue to support customers and it is product used in a variety of situations.
Whatever the situation I am reminded of the principles of lending from my banking exams back in the day, and many ex-colleagues will know the CAMPARI annotation – character, ability, means, purpose, amount, repayment, insurance. It is a little dated but as the famous quote says “those who fail to learn from history are doomed to repeat it”