Bankers Need Constant Care and Feeding

Keep your banker in the loop on new product developments, revenue forecasts and improvements in market share to keep them a champion of your business.

This is the last post in a 4-part series covering the business owners need for a loan to cover short-term cash flow needs. To read the whole series in order, visit my blog.

I’ve covered the importance of meeting with your banker and giving them an overview from time to time not only in case you need a loan, but also as a matter of good business practice. Remember, bankers deal with other businesses and you never know who they may know who might want to do business with you.

How to maintain a relationship with your banker.

Bankers need constant care and feeding of information to make them really helpful to your business.  How much business advice do you really expect from someone who talks to you once a year or comes to visit when they want to get out of the office?  You need an advisor who knows your business and is interested in your success.  And besides, your banker has the ability to provide emergency loans or help you get and keep a credit facility.

Here are five main things you want to do to maintain a good working relationship with your banker:

  1. Schedule quarterly meetings with your banker.  This keeps your banker informed but also helps you know if there are changes with your banker.  They get promoted, change employers or even leave the industry.  It’s important for you to keep in contact.
  2. Provide regular financial statements.  Again the minimum should be an income statement and balance sheet for the most recent quarter and year to date.
  3. Be ready to explain the successes and failures of recent business activity.  Even if it’s bad news, communicate with your banker.  Let them know what you are doing.
  4. Present cash flow projections, eight weeks at a minimum.  Present the good, the bad and the ugly.
  5. Allow your banker to talk directly to your CFO.  They speak “financialspeak”, or the same language and can quickly get to a resolution if needed.

Relationship benefits.

If you take these steps to build a stronger relationship with your banker, you will see your banker transform by:

  • Becoming a problem solver
  • Spotting cash trends earlier and spot potential problems
  • Suggesting solutions to problems early enough to get cash when you need it
  • Sharing  tools you are unaware of to help your business
  • Processing loan requests quicker because he can now sell your business to the decision makers instead of just reporting about your business
  • Making  suggestions based on experience over a broad range of businesses
  • Becoming a valued advisor
  • Growing into  a key component of success

By engaging your banker in your business, you’ll see a transformation where he or she will be anxious to invest in your business.  Because they know their investment will grow by not only repaying the loan but also through your growth and use of other services provided by the bank.  Because you are financially smart and you may have a trusted CFO who is financially smart, you help your banker help both of your grow your businesses.

See my other posts in this series:  

I Bring Financial Knowledge, Provide Financial Training and GenerateFinancial Stability

I am fluent in “financialspeak” and can translate your monthly numbers into strategies for future success.  I take companies to a higher level of success


Email :  Phone: 909-732-4917

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