How To Be Close, Open And Honest With Your Business Banker
If your business strategy is to have a consistently reliable source of loans for your small business then you must learn how to invest in your lending relationships. The investment of time, energy and money will deliver a stronger and more durable partnership for business financing.
Stay Close to Your Lender: Your banking relationship will thrive with closeness. Lenders like to know you by face and name. Creating a close professional relationship may help you get better loan terms and pricing and may facilitate the credit approval process. A borrower that is familiar to a lender, when all else is equal from a credit perspective, will often be considered a better credit risk. Spend some time with your banker at lunch, on the golf course or a quick office visit to say hello. Be available to meet with your banker and senior banking executives. This will cultivate an environment of trust and respect.
Be Open and Honest: There is a push and pull between the small business borrower and lender regarding disclosure. The lender prefers prompt and full disclosure. Many borrowers prefer selective disclosure when reasonably requested. The benefits of more full disclosure may include a greater trust between borrower and lender, potentially better terms and pricing on future loans, a more harmonious relationship and better dialogue if problems come up. Bad news does not get better with age. Staying close and being open with your lender can help create a productive borrowing relationship.
Stay close and be open with your business lending sources. This tactic can make your business less financially vulnerable and more durable.
Managing in a complex environment is difficult. You face the challenge of coordinating business processes, people and strategic planning to increase capital strength and stability. You know your organization’s financial capabilities but are they driving stakeholder value? Your fiscal weaknesses are apparent. How can they be neutralized? Are they evident to others? An extra set of experienced hands to do some heavy lifting is a luxury. Do you wonder how to cover the gaps in your company’s finance talent base? Hiring more employees is a difficult decision in good times and a non-starter in economic downturns. Who can you call that has the financial experience you need? The path to significant enterprise and professional growth is littered with obstacles that can stop forward momentum and hide competitive threats.
