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We are delighted to present our first Media Video release. You will be introduced to the Directors at  Robinson Sewell Partners - Brad Sewell and ...

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Ian Robinson        0448 697 674

Brad Sewell          0427 390 016

Michael Stout       0427 692 418 

Andrew Toole       0437 889 036

Deb Purvis           0409 438 115

David Robertson  0407 697 797

John Waterman   0437 792 700

We will provide an assessment of your business needs, and expectations of our service and agree to the scope of work required.

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The Elephant in the Room

21 Mar 2016 1:16 PM -

In 1814, Ivan Andreevich Krylov (1769-1844), poet and fabulist, wrote a fable entitled "The Inquisitive Man" which tells of a man who goes to a museum and notices all sorts of tiny things, but fails to notice an elephant. The phrase became proverbial.  The first widely disseminated conceptual reference was a story written by Mark Twain in 1882, "The Stolen White Elephant", which slyly dissects the inept, far-ranging activities of detectives trying to find an elephant that was right on the spot after all.  (Wikipedia)

On all matter of tones, it symbolizes the iconic truth that certain critical matters are never discussed or addressed.  In the financial universe and from observation it becomes a herd of elephants.

As a credit advisor, we must focus on educating our agribusiness and commercial clients on the downside or funding risk inherent within their borrowing structures to ensure we can implement loan configurations or financial strategies to assist in mitigating these risks.  Too often financial grenades that are launched onto balance sheets could have been avoided or commercially resolved prior to the collateral damage being invoked if this basic level of understanding had been noted and responded to (refer to a previous article Left of Bank).

The trappings and pitfalls are generally buried deep within the Terms and Conditions of loans, but there are more intricate layers beyond the T&C’s that need to noted.

It can be behaviorally challenging to have these discussions with your bank manager as you naturally do not want to give off signals that may misleadingly alert to financial duress.  It is the Elephant in the Room.  Likewise, it is naturally unnerving for an inexperienced bank manager to drill into these topics in order to avoid throwing a negative vibe into the relationship on the risk of losing the business.  So how can you assert these parameters into your working knowledge of running your business to be financially lean and strong?

Give Robinson Sewell Partners a call, and we will be happy to discuss all matters relating to agribusiness and commercial loans to assist you in your educational journey of financial freedom.

Make contact with us so we can begin your journey.

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