Eight Steps to a Stronger Relationship with your Banker
Establishing a strong relationship with your bank can make all the difference in the world to the success of your business in the years to come. Think of your bank as a financial partner and get to know the people, products and services they have to offer. Establish solid two-way communications, check in with them often and take advantage of the advice and information they have available.
- Find the right bank - and the right banker
- Get to know other players within the organization
- Establish credibility
- Demonstrate that you are reliable
- Share information
- Be proactive with bad news
- Insist on an annual financial tune up
- Keep the channels of communication open
Find the right bank - and the right banker
Shop around: find a bank that is interested in your type of business, and then find someone at that bank with whom you can be comfortable.
Tip: Ask your business associates to provide a referral.
Get to know other players within the organization
Have a relationship with the bank and not just one individual. Get to know your banker's assistant as well as her or his boss.
Tip: Always have at least 3 individuals within the bank who know you and your business.
Establish credibility
Through conversations and presentations of business plans, show that you have done your homework and know your business and its industry.
Tip: Don't be afraid to admit what you don't know, ask for help and seek expert
Demonstrate that you are reliable
Meet the commitments you have made to your bank. If you miss a loan payment or fail to provide financial information on time, this may become part of your business record.
Tip: When you can't meet a commitment , advise your bank well in advance and request assistance.
Share information
Keep your banker informed of anything that might impact the way your business and your account are operating. Share articles of interest about your industry with your banker.
Tip: Invite your banker to a special company event.
Be proactive with bad news
Report bad news, before your banker hears it from others; let your banker know that you are in control of the situation.
Tip: Report bad news along with your plan for dealing with it.
Insist on an annual financial tune up
The financial needs of your business are constantly evolving, as are the many products and services provided by financial institutions.
Tip: Take the time, at least once a year, to meet with your banker to go over the financial and banking needs of your business.
Keep the channels of communication open
Let your bank know when they are not meeting your expectations. Give them an opportunity to make it right.
Tip: It is important to communicate your expectations.
