How to Build a Better Relationship With Your Banker
Houston Small Business Consulting
1. - Call your lender at least once a quarter. Share positive company news and update him or her on changes in your projections.
2. - Routinely invite your loan officer (business banker or account manager) to stop by and see your business first hand.
3. - Send personalized birthday/holiday cards to all of your bank contacts (skip the fruitcake, however). One banker told us he always sends cards out to his clients on their birthdays and has never received one in return. Show your appreciation.
4. - Make sure that you are providing accurate information. Most banks' loan terms will require that you provide specific financial documents such as your income statement (P&L), balance sheet, accounts receivable and payable reports (with aging) quarterly or annually. It should go without saying, but please carefully read and review any documents before sending to your bank. Something as innocent as a balance sheet adjustment or a late receipt for a big sale can create major turmoil. Check each one for accuracy and provide an explanation for any unfavorable item.
5. - Share (some) bad news. If you have bad news, don't let your lender find out second hand. Always proactively contact the bank and explain what has happened and why. Make sure you explain the impact on your business and, most importantly, how you are fixing it. By being forthcoming, you give your banker the opportunity to be part of the solution and you demonstrate your own competence as a CEO and problem solver.
Source: CBSNews
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
Houston Small Business Consulting.
Business consulting for women entrepreneurs in Houston, Advice for women entrepreneurs, Business Coach in Houston, Growth strategies for small business, Business coaching for women, Growth for women-owned businesses, Houston business coaching, Financial strategies for small business, Small business consulting in Houston, Business management consultant, Business, Consulting, Women, Entrepreneurs, Houston, Coach, Growth, Strategies, Coaching, Owned, Owner, Financial, Consulting, Management.
