Customer and bank perspectives

For more than three years now, I have been approaching financing issues from the perspective of my clients and partners, whereas for the 10 years prior to that, I worked as a risk manager at a bank or in the bank’s risk management department.

These two perspectives differ fundamentally: the entrepreneur sees opportunity and growth, while the bank examines what could go wrong. It’s like the sunny and shady sides of a mountain: we’re talking about the same thing, yet we see it in a different light.

I believe that the key to successful financing lies in understanding these two perspectives. For the bank, the fundamental issue is that there must be real, marketable value behind the financed transaction at all times—otherwise, the value of the collateral could be zero (or even negative!).

In practice, this can involve significant risks (company acquisitions, real estate, receivables or inventory financing), which can be managed with proper preparation.

EXAMPLE:

In a real-life example, the financing of a notebook inventory was ultimately made possible by inventory analysis and random price checks, because it was proven that there were no hidden losses in the company—that is, the inventory was still saleable and not considered obsolete.

CONCLUSION:

Clients must prepare in advance for the bank’s requirements (loan structure, management, equity, collateral, other conditions, restrictions), while banks must understand the client’s business logic and experience. This common ground ensures that financing becomes comfortable for both parties.