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Planning for the financial future of your business requires building a banking relationship. Few businesses survive without the solid foundation of this type of financial relationship.
Why don’t businesses create strong banking relationships?
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Some entrepreneurs are too passive or reactive
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Some fail to recognize the importance of being proactive in building the appropriate relationships needed to grow a business
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Some don’t build a relationship with their bank because they know they do not qualify for bank financing at this time
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Some don’t think they will need financing in the immediate future
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Some don’t realize that sooner or later they will need to borrow money if they want to stay in business
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Some small business owners who do not have a business plan lack the vision to see the need for credit – until they need it – and
by then it may be too late!
When is the best time to borrow money?
What happens if an entrepreneur doesn’t have a good relationship with a banker?
When a business owner manages by crisis he can lose great opportunities!
If the owner does manage to get involved in an ‘opportunity,’ the cost of the money – interest rate, fees, closing costs – are usually much higher than bank financing where a good relationship has been established.
What does a relationship with a loan officer mean?
The loan officer knows
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how you think
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how you communicate
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how you react when things don’t go right
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whether you plan ahead
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whether you have a ‘vision’ of where you want to go – in writing – a Business Plan!
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whether your plans and goals and actions match your vision
What are the advantages of a good relationship with a loan officer?
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You will have built a strong case when the time comes for the loan officer to speak in your behalf to a loan committee
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A loan officer has the power to improve loan service and pricing
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A loan officer can save you time
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A loan officer can guide you in developing your loan application package so you will have a better chance of getting the loan
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A loan officer can direct you to other sources of business financing if they cannot make the loan themselves.
Why? The banker wants to keep your business, so readily can direct you to companies that do not compete for your deposits
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When you shop around too much for a loan, each request shows up on your credit report. Each time an institution pulls your credit report your scores go down!
Managing your banking relationship is just as important as managing your cash flow or your credit facilities. It is important to be proactive in each of these areas if you want to be successful.
Opportunities come and go! The great deals go to those who can react quickly. You need the financial relationship in place so you can quickly seize these opportunities.
If you think Financial Relationships can enhance your Cash Flow, or if you feel there are other ways a Financial Relationship would benefit your business, e-mail us at
CashFlow@NowFinancing.com.
There’s no obligation!
A more detailed explanation of building Financial Relationships is provided in the book,
The Entrepreneur’s Guide to Prosperity -- Financing Your Small
Business, by Morris Bocian. |
