Archive for May, 2007

It seems unreasonable to ask customers to fit their whole financial situation onto a form. I am guilty in my practice of using this type of form as are most in the financial industry. When my clients first take a look at the personal financial planning questionnaire, there often is a sigh that follows. The sigh is similar to one of students receiving a large homework assignment.

Most people do not fit neatly into the boxes or blanks found in most forms relating to finance. This is why it is critical to have a relationship with those who provide you with financial advice. Forms are black and white, but there is a lot of gray that comes with life experience. Conversation is the key to understanding the circumstances surrounding a client’s financial situation.

Few financial institutions understand this concept better than local banks. When applying for loans with large banks you are likely to find that there is little flexibility beyond the confines of the form. These forms are a method of minimizing risk.

The lending process can be a very different experience when dealing with smaller, locally owned institutions. Small-business loans, equity lines of credit and other types of lending that might be perceived as risky by larger bank often are readily available at a locally owned bank.