Business Review Weekly recently published a contribution from former Refund Home Loans boss Wayne Ormond, outlining his advice to businesses dealing with bank lenders.
Ormond, who was at the helm of Refund when it was put into voluntary administration leaving its brokers hanging for months, wrote in BRW that dealing with the banks was like 'swimming with sharks'.
"I recently had the opportunity to swim with sharks at a water park on the Gold Coast," Ormond writes.
He goes on to conclude. "Why I am talking about swimming with sharks? Well it’s the closest analogy I have to my experience in dealing with Australian banks in the business sector."
Ormond partially blamed Refund's 'restrictive banking facility' and a 'poor relationship' with his bank for the company's downfall, and gives tips to business owners so others can avoid his fate.
Refund Home Loans was eventually sold to Homeloans, which picked up only 54 brokers after sending out 170 contracts, as well as a loan book worth more than $1.9bn.
Ormond warns business borrowers to do adequate preparation, and does say that if he had his time over again, he would engage an experienced commercial loan broker.
"I hate to say it but, everything comes to an end, sometimes for the better sometimes for the worse. When it comes to the banks, make sure you’re prepared for both," Ormond wrote.
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