Why strong banking relationships drive business success
In today’s fast-moving property market, timing is everything. For property developers and investors, the difference between missing out and moving forward often comes down to having the right financial partner by your side.
Recently, we spoke with one of our property clients to understand the challenges they face, how they navigate growth, and the role banking relationships play in their success.
Overcoming the biggest hurdles in the property industry
Residential and commercial subdivisions remain at the core of their business. Like many in the industry, they’ve also diversified into property investment with long-term income streams such as childcare centres.
While opportunities in these sectors are strong, the client noted that success hinges on three critical factors:
- Strong tenants with secure, long-term lease agreements
Gives financers confidence that cash flow is reliable, making it easier to secure ongoing banking support. - Ensuring valuations reflect true value
Allows banks to provide funding at the right level, rather than holding back growth due to undervaluation. - Relationships with finance partners who understand the industry
Ensures banks can respond quickly with tailored solutions, helping developers act on opportunities without delays.
As they explained, navigating the challenges mean you need a financier who’s ready to move with you. Delays or over complicating processes completely derail a project.
The impact of tailored banking solutions on growth
A recent refinancing project demonstrated the value of the partnership.
When their existing financier failed to offer them an appropriate loan-to-value ratio (LVR) on an asset that had a long-term lease, and an A grade tenant, they turned to BCU. We were able to offer them a more competitive structure, which in turn freed up additional equity. This enabled them to pursue new opportunities with confidence. “That extra cash in hand allowed us to explore another project and opened up more options for us” they explained.
Why banking relationships make business easier
When asked what makes the biggest difference in choosing a banking partner, the client’s answer was clear: agility and relationships.
“Banking is quite a personal thing. It all comes down to experience and maturity of the banker.”
They highlighted the positive experience of working with their BCU Relationship Manager. What stood out most was having someone who was methodical, knew the industry well, and could anticipate requirements well ahead of settlement.
“If the interest rates are the same across the board, it comes down to who is making your life easier and knowing you will be looked after in the future.”
A fast, simple and stress-free application process
The application process was another clear area where BCU stood apart from larger banks. With proactive planning and clear and timely communication from their Relationship Manager, everything was well-prepared in advance. This meant they were able to avoid frustrating delays the client had experienced with larger institutions. Despite multiple business partners involved, the process ran smoothly and on time, a stark contrast to the complications they had faced elsewhere.
What other businesses can learn
When asked what advice they’d give to other businesses considering their banking options, the client was direct: “BCU – as a smaller bank – is much more flexible.”
Their experience highlighted three practical lessons:
- Look for flexibility – agility can make or break opportunities. Reflecting on their experience with larger banks, the client said:
“It all comes down to who your banker is, how they manage internal politics and compliance, and how much they shield you from that” - Value personal support – choosing a local partner who genuinely understands your business and anticipates your needs matters more than just processing paperwork.
- Consider long term confidence – the right relationship ensures you can move forward with certainty, free from the red tape and delays often experienced with larger institutions.
