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Common Questions About Bank Negotiations

A word to the wise. In business you get what you deserve…and you deserve what you negotiate.

In too many companies, managing the banking relationship has been synonymous with securing the credit line and negotiating favourable security and margining arrangements. Managing bank pricing across the myriad of bank interface points has been, at best, a negotiating afterthought.

Companies – be they large or small – that don’t managing their banking costs should expect to pay premium bank pricing. And they shouldn’t grumble about it. When it comes to bank pricing, banks are not the problem. When banks negotiate they are doing what they are supposed to be doing – looking after their shareholders’ interests. When it comes to banking, CFO’s need to look after their shareholders’ interests.

In too many companies, managing the banking relationship has been synonymous with securing the credit line and negotiating favourable security and margining arrangements. Managing bank pricing across the myriad of bank interface points has been, at best, a negotiating afterthought.

In fairness, companies have not fared well in bank negotiations because they have not had the benchmarking data that’s needed to manage bank pricing. Absent this tool, there has been little incentive to tackle the issue

His clear, concise report identified significant savings and he was instrumental in improving many of our processes.

Jannock Limited
R. John Slattery
Corporate Treasurer