“LACK OF LOANS?” YOU ARE THE PROBLEM!

 

    Another preposterous statement?

 

 

ow about that for an attention grabbing statement!!! After reading the 1st paragraph on the SmartBrief site, I just couldn’t read any further – here’s what the summary said that caused my one eye to roll:

“While the Federal Reserve and lawmakers say banks need to lend more, the problem is that consumers and businesses aren't seeking to borrow. The sluggish economy has prompted companies and consumers to eliminate debt and increase savings. Overall, loans and leases at commercial banks are 3% lower than the high of $7.32 trillion in October 2008” … ELFA SmartBrief July 30, 2012

Being a basketball fan, one of the enjoyable video clips I still love is Allen Iverson from 10 years ago when he was taken to task about not practicing at game speed … for those who remember, his classic line was “Practice … you mean practice … are we talking about practice?” That image kept running through my mind as I super-imposed

“Borrowing … you mean borrowing … are we talking about businesses not wanting to borrow? … you gotta be kiddin’ … businesses don’t want to borrow????

Now, I readily admit I didn’t read the rest of the article – reader’s block I dare say – and I don’t intend to. But when I look at our helicopter industry, how preposterous a statement! Perhaps the statement is correct for those few helicopter entities who are cash flush and elect not to use financial resources such as loans and/or leases in the business strategy … or perhaps the statement is correct (and this one I do believe) because helicopter companies have been so frustrated and alienated by the financial institutions’ inability or lack of desire to dig deeper to find out more about our business … how it operates … the equipment and its value retention if properly maintained … just to name a few.

To me – in talking to a handful of folks in our industry – many of our helicopter operators have simply grown tired of attempting to work with the banking community and either being summarily dismissed right at the start (and by the way, I believe a quick “no” is better than a prolonged “maybe”) … or experiencing the intense interrogation suitable for a captured warrior during the crusades (obviously an overstatement and my own preposterous statement!).

Now, does the article stimulate both the financial institutions and the potential borrower to attempt again to come to a “mutual reconciliation of judgments” (an oft used line from professor Durham) where the bank is willing to take the time and considerable effort to understand their customer and their needs … and in turn, the customer is willing to re-invest the time to educate the lender without having the risk of being dismissed like a bell signaling the end of 3^rd period? Perhaps that is the real message here.

If ever, now is the time for both sides – the lender and the customer - to come together … to work together … and develop a rapport which will lead to more outstandings for the bank as well as satisfied customers who will truly become “customers for life”.

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