How to conduct negotiations with financial institutions

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Written by Silvia Varela Pousa
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In recent years we have been observing an increasing concentration of financial institutions. This entails a significant change in the negotiation processes with banks.

Thus, more subjective factors such as trust in the financial institution's staff, the client's history and previous experience with the institution have lost weight, giving way to much more rigid and objective analysis and decision-making processes, based on the analysis of the risk and profitability of the operations from the institution's point of view.

That is why knowing the criteria that govern the decision-making of the entity that we want to finance us is of vital importance, allowing us to value the positive aspects and reduce the less uae phone data valued ones, in order to achieve a successful negotiation with the bank. We must stop and think about several fundamental aspects in the negotiation.

Financial Negotiation
1. Risk Analysis
How does a financial institution calculate the risk of a transaction? All financial institutions take into account three basic aspects when studying the risk of a transaction:

The client's solvency , which gives us the client's assets. Here, the volume is as important as the client's liquidity.

Repayment capacity , that is, the company's ability to meet the payment of loan installments or financing conditions.

Management capacity of the company's partners and directors.

The bank will check and analyse the information in its risk committees and the result will be given based on the three aspects mentioned above.