Investment advice

Ruapehu Bulletin, Volume 12, Issue 556, 4 October 1994, Page 14

Investment advice

By Warrick Funnell, independent investment advisor Question

I have been on the Domestic Purposes Benefit for about five years and have retrained myself and am now about to set up by own business. I have always banked with the same bank but have not enjoyed their customer relationship - they have always seemed to treat me as a bludger although I have never been overdrawn. If I change banks now will I have to apply for a business loan or anything? On My Way Out

Answer I too have trouble accepting that banks in general are conscious of their customer' s emotional needs as well as financial needs. Last year I had this discussion with a banker who assured me that they were into customer service be- ' cause they had lowered the counters! Your income for the last five years has been fixed. As long as you have not had any bad debts or cheque dishonours then you should not have any black marks against you. The thing you have to convince the bank is that: Your project is viable and will work and you have the skills to make it work; that if even through no fault of your own the business fails you have security that the bank can use to recoup the loan it has made. You may be able to provide them with some asset such as your house that they could take as security or you may have a person who they will accept who will guarantee your debt. Naturally you would go back to your existing bank and ask but don't be afraid to ask the other banks as well. I wish you all the best in your new venture. DISCLAIMER The advice given here is of a general and non specific nature. It is essential to seek full advice for each individual case before any action is taken.