How to Develop a Relationship with a Commercial Lender

Taking on debt is a critical decision for any business. To do it Screen Shot 2015-01-29 at 3.20.27 PMsuccessfully, business owners need to surround themselves with the right team of advisors, including an attorney, CPA and most importantly, the right commercial lender.

In these turbulent financial times, it’s essential to have a trusted lender on your side who’ll provide critical guidance and support. If you’re considering taking this important step, here are some tips to help you build a productive relationship with a lender.

Do your research
Your relationship with your commercial lender is crucial to your success. Don’t rush into it. Is the bank invested in the local community and economy? Do they know the regional market? Do they have industry knowledge or are they willing to learn? Do you see yourself working well with them long-term?

There are many factors that determine if a lender is a good match, and you’re the only one who can decide. But don’t settle. When the relationship is right, you’ll know.

 Build a relationship
Make your lender part of your business team. Work to build a personal relationship with your banker and be transparent about business operations, cash flow and capital needs. An invested relationship with your lender will contribute immensely to your company’s future success.

Let them help
The right lender will personally invest in your business and work hard to understand your company and industry. This means you can trust them to guide you and provide the specialized knowledge you need.

Use this to your advantage. Seek their input on increasing capital, the future direction of your business and adding capacity against demands. The right lender will provide pointed advice and become one of your most trusted advisors.

 Communicate openly
Don’t gloss over bad news with your banker or avoid tough conversations. In order to develop a trusted relationship with your lender, transparency is essential. Honestly share your wants, needs and requirements with your banker. The more your lender knows about your company, the better guidance they’ll be able to offer.

 

Managing Banking Relationships
At Countybank, relationship banking isn’t just about the bottom line. Our relationships are built on flexibility, mutual interest and trust. Running a successful business takes courage and determination, and as a partner we want to see you succeed. Give us a call at (864) 335-2440 to learn more.

 

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.