@Ben Tuszynski from @Judo Bank, shares his insights on the importance of banking relationships for small business owners. Ben is currently the Managing Director of Judo Bank in Victoria and Tasmania. He has over a decade of experience in the banking and finance sector. Joining Judo in 2017 as one of the pioneering employees, Ben has played a pivotal role in the bank's substantial growth over the years. His primary focus lies in supporting small and medium-sized enterprises, aligning with Judo's commitment to providing tailored financial solutions to businesses, in an age of #industrialisedbanking. Our conversation covers;Judo's nimble and responsive approach to #smebankingThe four C's of creditBen's tips for business owners, such as the value of having open discussions with banking professionalsWhat to do if you're feeling frustrated by the lack of support and opportunities from your current bankTrusted advisors for small businessesVendor finance in #businesstransitionsExplore better banking relationships through skilled finance brokers"No one business is the same from the other, so how do you industrialize that whole process? We really want to have a look at what's their management experience, what's their skill set, how have they gone through the ups and downs of the economy and weathered those storms?" Ben TuszynskiTimestamped summary of this episode:00:00:14 - Introduction and Technical Difficulties Michael and Julie from Judo talk about technical issues regarding Ben's recording for the podcast.00:03:13 - Catching Up and Personal Background Ben and Michael catch up on their personal backgrounds, discussing Ben's move back from Perth and his role at Judo.00:07:02 - Judo's Mission and Target Audience Ben explains Judo's mission and target audience, focusing on small and medium-sized enterprises (SMEs) with turnover up to $100 million.00:13:07 - Judo's Approach and Importance of Personalized Banking Ben elaborates on Judo's approach, highlighting the importance of personalized banking relationships for SMEs and the industrialization of the banking market.00:17:21 - The Importance of Reviewing Banking Relationships Michael and Ben emphasize the importance of reviewing banking relationships and the role of a trusted banker in supporting the growth and success of SMEs.00:20:02 - Importance of Collaborating with Accountants and Business Coaches Ben emphasizes the importance of engaging with accountants and business coaches to navigate complex business situations and provide added value to customers.00:21:48 - Judo's Customer Base and Industry Focus Ben discusses Judo's industry-agnostic approach, catering to SMEs across various sectors such as accommodation, manufacturing, financial services, and property investment.00:25:17 - The Four C's of Credit Ben explains Judo's credit assessment framework based on character, capacity, capital, and collateral, with a focus on character and the ability to walk the factory floor for a deeper understanding of the business.00:29:39 - Importance of Credible Cash Flow Forecasts Ben emphasizes the significance of credible cash flow forecasts and the business owner's ability to endorse and explain the assumptions, fostering trust and communication in the lending relationship.00:33:29 - Funding Opportunities for Growing Businesses Ben highlights Judo's approach to lending against trading businesses, supporting growth plans beyond traditional equity in property and enabling businesses to access funding based on their strong balance sheet and income generation.00:35:25 - Understanding Debt Servicing Capability Ben explains the importance of understanding a client's capability to service debt on a case-by-case basis. He emphasizes the need for deeper conversations and not missing out on growth opportunities.00:36:43 - Business Growth and Financing Ben discusses the dynamics between business owners and potential buyers when it comes to taking on debt for growth. He highlights the role of trusted relationships and the importance of considering alternative financing options.00:40:54 - Vendor Finance and Business Sales Ben and Michael explore the concept of vendor finance and its potential in facilitating business sales. They emphasize the need for effective structuring and collaboration between the buyer, seller, and banker.00:43:32 - Loyalty Tax and Customer Relationships Ben delves into the concept of "loyalty tax" and emphasizes the importance of delivering strong relationships and support to existing customers. He also discusses the role of finance brokers as an effective channel for improving banking relationships.00:47:34 - Economic Outlook and SME Support Ben shares his views on the economic outlook for small and medium-sized enterprises (SMEs), highlighting factors such as labor market conditions, property market trends, and sector-specific considerations. He reaffirms Judo's dedication to supporting SMEs.00:53:09 - Building Trust and Long-Term ...
