When starting a negotiation with a financial institution, it is essential to know a series of tips or techniques for negotiating with banks that makes it easier for us, as far as possible, to achieve the better conditions for our operations with banks.
10 negotiation techniques with banks
1. Ask without being ashamed. When financing is needed for a project, the most common thing is to request it from financial entities. Furthermore, in order to get the best conditions for your loan, you must ask for or claim a good price without any fear, since whether you have to pay more or less interest on your operation will depend on all of this.
2. Negotiate with various financial entities. It can be risky to work with a single financial institution, so it is important to go to several entities and claim your operation with the institution that best suits you.
3. Submit your proposal in advance. The bank will spend a lot of time analyzing the information it has about you and your company. Therefore, you must organize yourself efficiently, so as not to convey bad feelings regarding your planning and financial management.
4. Negotiate with conviction and total transparency. Act with total truthfulness and transparency when providing the institution with all the necessary information during the process.
5. Not requesting our full amount at the beginning. First of all, request lower amounts with the bank than you really need, once you get the desired conditions, negotiate for the amount you need, possibly get better conditions for your operation.
6. Convey the strengths of your business. Let your bank know the strengths of your company, your competitive advantage, market position, etc. In this way, you will transmit more security to the entity to invest its money in your business.
7. Convert your weaknesses into points for improvement. Inform your bank of the improvement plans that you are going to carry out in order to solve the weak points of your business.
8. Negotiate for the long term. Plan an operation for the medium or long term, in this way, you will convey to the financial institution that you want to become a loyal customer.
9. Know the limits. It is of great importance to know the limits to which the bank is willing to go. Once that limit is reached, it is preferable not to force the negotiation; in the future, the financial institution can improve the conditions if good results are demonstrated.
10. Domiciliation. It could be a plus to domiciliate your payroll or your company's receipts with the financial institution with which you negotiate.
If you manage to carry out these techniques, during the negotiation process with your bank, you may be able to great results in your financial operation.
In it master's degree in Financial Management At the EIP International Business School we offer practical training that enables our students to know these negotiation techniques and how to carry out adequate financial management of the company.
