The banking industry has changed rapidly over the last ten years; the advent of the Automated Teller Machine (ATM) and the Internet have added convenience and flexibility to the way businesses and individuals conduct their banking transactions.
While many of the financial tasks have been automated, when it comes to credit and loans, it is to your advantage to establish a rapport with the person who is responsible for your account as well as the bank manager. Both of these individuals can play a role in acquiring or extending credit to your company.
Consider your visit to your bank as a networking opportunity: take time to research your bank’s activity, keeping abreast of press reports about your bank. This gives you the perfect way to start a discussion with your account manager. When it comes to the products and services of the bank, particularly credit lines and business loans, the more you identify your face with your account number, the easier it will be to receive information that will help you to qualify for these services.
Although developing a personalized set of services is part of an account manager’s work, very few business owners realize that there are many factors that are part of the criteria for loan approval. Building credibility with your banker starts by shifting the focus from the way you see the situation to the perspective of your bank. If your long-term business goals are ambitious, a credit line or business loan could be very helpful in helping you to realize them.
Arrange an appointment to discuss your long term plans with your banker and ask them what is the best way to accomplish them. Bankers look at your account balance as well as your activity; how often do you make deposits, how many checks or withdrawals you make and whether or not your account has been overdrawn.
Being consistent in your banking activity will also bolster your credibility. Ask your banker to explain their classification of businesses; each bank has their own system. A small community bank will be deal with their business customers differently from a large, multi-national banking organization.
If your efforts to develop a relationship with your banker meets with the cold shoulder, start researching banks that manage the accounts of businesses of your size or that have a small business banking department.
The relationship between your business and your bank is one that has to carefully developed over time, make every interaction with your banker an educational one as well as one that enhances the financial position of your company.
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1. OPTIMIZING THE BALANCE SHEET
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