Other relevant aspects in the context of bank-company relations are set out below:
1. – Strategic plan of the companies:
At present, a time in which the management models of the past are in question, it is necessary for all companies to review their objectives and their means to achieve them.
It is important that financial institutions know from the businesspersons their strategic plans and how they are adapting to this new environment in order to design jointly new financing strategies.
2. – Time management:
The Internet banking service reduces time and cost for both parties, so it can play an important complementary role in the relationships and communications between companies and financial institutions.
3. – Choosing the appropriate financial products:
When financing the purchase of an asset, the appropriate financial product must be found so that the useful life of the financed asset is the same than the term of the loan. Otherwise, you could be paying the financial burden of an asset that had to be written off due to technical obsolescence or because its useful life has come to an end.
4. – Proactive and collaborative approach to solving difficulties:
The bank-company relationship is a relationship that must be sincere. Thus, if a company foresees that is going to have problems in the future to meet its payment commitments, it is advisable that it informs its financial institution so that it can look for, in time and in a consensual manner, alternatives of refinancing and solutions to the existing problems.
5.-Global vision of the client:
Financial institutions positively value the existence of a multi-product relationship and consider relationships with their clients on an overall basis, taking into account their share within the total business.
Example: Client A only has a time deposit of 30,000 currency units (c.u.) with a financial institution, while Client B has a loan of 10,000 c.u., a passbook with 10,000 c.u. and a pension plan of 10,000 c.u. Both have positions totalling of 30,000 c.u., but the latter has more products with its financial institution and therefore has a deeper business relationship.
6. – Changing environment and access to credit:
We have recently witnessed a process of radical change in the financial market that has affected the approval models for credit transactions and, in general, risk management. This changing environment has created a demand for better knowledge of the client and a realistic assessment of the conditions for the approval of credit transactions.
Additionally, relationships between a company and a financial institution can arise in different ways:
- Offering / demand of a specific product or service to meet a specific need at a given time. It begins at the request of one of the two parties, establishing contact based on different criteria: Commercial, price, relationship or market share, basically.
- Offering / demand of specific products and services necessary for a company to meet all or part of its financial needs, among which it can select the most suitable or favourable at all times.
It usually starts from a commercial offer made by a bank to companies in a certain sector in which it wishes to expand its penetration rate. It is materialized in an offering of products and services that the institution considers most appropriate to meet the specific needs of the companies to which it is directed.
- Banking-trade sector financial relations agreement.
It is perhaps the most powerful instrument for the relationship between a banking institution and a group of companies (trade association, area or federation of business associations), whose representatives reach a comprehensive financial collaboration agreement in exchange for specific compensation and an offering of products and services suitable to the associated group at preferential prices during the term of the agreement.
The financial offering included in the agreement is usually addressed to the association, on the one hand, and to its associates and employees, on the other.
