Strange title for an article, but this is the response that I received from the Relationship Manager of one of the top four Australian banks when I dared question a letter of offer he had given a club for a construction loan in the vicinity of $1.5 million.
A letter of offer from your bank is a critical document – perhaps the most critical document a board will sign, or at least second to your CEO’s contract. An offer letter sets out the bank’s approved structure of finance, including all the terms and conditions for providing and continuing to provide the finance facility. I am amazed at the number of clubs, and in fact all organisations, that actually accept an offer from a bank without fully understanding all its clauses.
So let’s look at the issues.
Firstly, was I qualified to review and negotiate this letter of offer or should I not “worry” my “little self about it” and “just tell the club to sign the letter”? Secondly, what was the issue in the letter of offer that concerned me?