Banking Relationships in Business
Developing a great relationship with your banker is paramount to continued growth. A banker shares in your vision and business plan. They become a sponsor and mentor to help you reach some of your goals.
A banker should be treated like your best customer. They should understand your business model, growth plans, strategies, and share in your successes. You should provide them with a comprehensive Business Plan each year and review the previous year with them as well to explain any issues that you had.
The business needs working capital.
The business needs a guidance line of credit.
The business guidance line is up for annual review
The business needs to take out additional loans for equipment
The business needs to refinance or restructure existing loans
The business is experiencing a cash flow issue and needs a short term unsecured loan.
The business needs to purchase property.
Networking with other businesses (bankers other clients)
Finding a banker who is familiar with your industry can be a challenge but they are out there and they understand the profit margins and overhead your industry operates in. They have helped others before you and have valuable insight into some best practices.
If you can’t find a banker with industry experience, you can work with a banker and be the benchmark for others. You need to be open and honest with your banker. Make them part of your “Board of Experts”.