Are You Leaving Money on the Table at your Business Bank?

In a rising cost environment, could renegotiating with your business bank conserve cash flow and profit?

By: Karen Ngoh. Published 2 June 2026

It's a tough time for Australian businesses – rising costs and fuel prices, softening consumer demand, difficulty with labour supply, and now the proposed CGT changes on sale of business. How do business owners or management teams navigate the challenges ahead?

One relatively simple way to increase both profit and cash flow is to review and restructure debt facilities, releasing cash flow that supports the business' objectives.

How a debt advisor breaks the deadlock

1. Banks Only See Their Own Appetite

When you take an opportunity to a bank, they are constrained by their own credit appetite. At times this can be at odds with what makes sense for the business, leading to missed opportunities to fund an acquisition or expansion.

In the old days, a "no" from the bank manager meant a business had to shrink to fit – postponing expansion plans, decreasing stock purchases, scaling back a fit‑out or walking away from a property acquisition.

Today, engaging a debt advisor is the most efficient way to survey the broader funding market and determine what other options might be available.

Our rationale is simple: if you, as the experienced business owner or CFO with a proven track record, are convinced the opportunity is pivotal to future growth — and can provide projections and research to support it — then we can find a funding solution. This is especially true when the opportunity is within your existing industry and backed by a profitable, stable underlying business — or where you have flexibility to provide additional property security in return for improved cash flow.

2. Structure Matters More Than Rate

It’s important that businesses engage a debt advisor with sound commercial banking experience to first optimise structure, then negotiate price. Beware of assuming a mortgage broker is best placed to manage complex business requirements, particularly where commercial developments or trading businesses are involved.

At Character Finance, we are ex‑business bankers who have managed portfolios inside major banks. We are accustomed to the structuring requirements of commercial transactions.

When we approach banks, we already know what their loan structures should look like for your scenario based on the market, and we know when to push the bank to achieve or exceed your objectives.

A recent example: a $16m refinance for a service station operator. Their existing bank imposed an 8‑year amortisation on a newly opened site. A sharper rate wasn't the objective — the client needed an interest‑only period to consolidate cash flow, supported by strong forecasts as a multi‑site operator. For further detail refer our case studies.  

3. Competitive Tension Sharpens Pricing

With structure optimised, pricing becomes the next lever.

In years past, businesses often had decades‑long relationships with a single bank. Bank managers became trusted confidantes. Pricing was secondary to ease of doing business and the strength of the relationship. Australia was operating in a lower‑cost environment, without the impacts of technology and globalisation, and customers were willing to pay a premium for continuity and local service.

In the past decade, the "old‑school banker" who stayed in their role for 10+ years has largely vanished — moved into team lead or executive roles, or transitioned to retirement. As executives, they keep clients loyal with functions and lunch invitations, all while giving new clients materially sharper pricing than what long‑standing, loyal clients receive.

This is the "loyalty tax". Regrettably, banks have little commercial incentive to sharpen pricing for a strong client unless there is a risk of refinance and losing their business. 

A debt advisor creates quiet, strategic competition to sharpen pricing — often saving clients 1.00% to 1.50% on their interest rates. On $10 million of bank loans, that's $100,000 to $150,000 per year, straight to the bottom line.

4. A Good Banker Creates Better Outcomes

Even with the right structure and competitive tension, the individual banker still shapes the outcome. Capability varies widely between bankers in the same role at the same bank, and many change roles frequently, leaving customers to 're-educate' their new banker on their business. 

We know which bankers are best in market and build rapport over successive transactions so they naturally prioritise our deals. When your contact moves on, we brief the new banker on your business history and track record, protecting your internal standing with the lender while significantly reducing the time impost on you.

A good debt advisor clearly positions your strengths and expertise. A good banker translates that internally, building confidence and lending appetite.

5. We’ve Got Your Back. You Run Your Business.

Having worked in several banks, I've seen it firsthand. In the 12 months after closing a transaction, customer satisfaction often falls. Bankers have annual performance targets that lean toward increasing loans to existing clients, acquiring new clients, and generating profit from their portfolio.

A bank will roll out the red carpet for a new client or when lending needs increase — but often hangs a "do not disturb" sign on a satisfied one.

In many ways, the debt advisor has become the modern equivalent of the old‑school banker - the person who knows your business, advocates for you, and makes negotiation easier and more consistent over time.

With one key difference - our loyalty sits with each client's success, while banks are required to balance the profitability of their whole portfolio.

As debt advisors, working respectfully yet strategically with lenders, we keep you front of mind. We review your annual accounts and, as performance improves, initiate discussions to review your pricing and terms. This might include reducing reporting covenants, negotiating waivers for 3‑year revaluations, or providing the bank with our perspective on your business growth — building your reputation.

Working collaboratively and strategically with lenders, keep your debt healthy, simple and fair and your banking relationships strong. We give you the time back to focus on running your business. As you take care of your business' clients, let us look after your lending needs. 

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© 2026. All rights reserved. Karemy Holdings Pty Ltd ABN 66 149 776 438 trading as Character Finance. Karen Ngoh of Karemy Holdings Pty Ltd ABN 66 149 776 438 trading as Character Finance, is a Credit Representative - Credit Representative Number 577204 - of Australian Finance Group Ltd ABN 11 066 385 822, which holds Australian Credit Licence Number 389087.

Email karen@characterfinance.com.au Email brian@characterfinance.com.au