Don’t you wish that bringing in money was as easy as simply asking for it? Here is a situation where the proper question at the proper time resulted in it being that easy.
A company had a line of credit with a local bank. They had a long banking relationship with this bank and their line of credit was renewed on an annual basis. This renewal resulted in an annual loan processing fee of $3,000, which wasn’t unreasonable for the size of the loan.
I was asked to be involved in the annual line of credit renewal. I was aware of another local bank that was aggressively trying to obtain new loan accounts. In order to make a switch enticing, they offered a line of credit on similar terms, without any loan origination fee.
This company didn’t want to give up the long banking relationship over a few thousand dollars, but I asked their long-time bank if they would match the competing bank’s offer of no origination fee. They did so gladly and didn’t charge an origination fee for the next 3 years.
Sometimes expense reduction can be as simple as asking the right question. Having the right financial management professional involved in your financial processes can help ensure you ask the right questions at the right time.