Whether your business is growing or already established, as an entrepreneur it is important to know that the relationship you have with your bank is one of the most significant to your business’ success.
So how can you manage this relationship to make sure you’re getting the most out of it? By following these key principles:
1. Understand your relationship manager’s point of view. – A bank manager wants a portfolio of successful commercial clients—ones who are performing well and able to repay any and all debts. When you make money, the bank makes money. Simple as that.
2. Think backwards and forwards. – When seeking a loan, know that your bank is just as interested in your future as it is in your past. Young entrepreneurs often believe an in-depth business plan forecasting tremendous growth will win a bank over. However, the bank also wants to know about your previous endeavors and track record.
3. Lean on your bank manager’s knowledge. – Chances are that whatever problems your business may run into, your relationship manager has seen it with other businesses before. Pull from their experiences.
4. Be honest about money issues. – Keep your bank informed of any financial issues your business may be facing. If you are having trouble with a client or customer and a late payment, let the bank know. Most often, banks can make allowances. Remember, they want to see you succeed!
Help your bank help you by being proactive. Keep your bank informed of significant events in your business—whether good or bad. This is a great way to develop trust and build a strong and lasting relationship.
Note: “Fresh Ideas” are published each week by Countybank and its family of financial service companies. With financial centers in Greenville and Greenwood, Countybank has a team of highly engaged professionals ready to bring a full scope of financial solutions designed to help families and business owners reach their goals.