Banks are becoming more selective when it comes to choosing businesses they will be lending money to and over other deals that they commit to. When you’re lucky enough to be graced by a bank, always remember to keep your relationship with it strong. Make it better by considering the factors on how to make your bankers wanting more from your big or little business.
Keep a good and lasting relationship
Getting a nod from a bank when it comes to financing a business is never an easy task. So when you’ve already earned the trust of one to start your business venture, then try your best to maintain it. How? Learn how to educate the bank of the true nature of your business, including your strategies and your financials. Communicate well enough to the bank your goals and objectives. Let the bank acknowledge the sincerity and longevity of your missions and visions. Tell the bank the ups and down of your business—be it a new contract to come in or a mishap sometime in a month. When the bank proves your credibility as a partner, then expect a better relationship to arise from your actions.
Have a strong business strategy
Banks are pleased to do business with people who know what they are doing—who plot out the necessary steps to achieving their goals. Hence, the bank wants to see if you have a coherent strategy inculcated in your business. However, always remember to keep your strategies firm and cohesive. Banks don’t appreciate people who jump from one decision to another—that only reflects the kind of business you are establishing: a loose and crumbling one. Be considerate of a plan B, though, because you’ll never know when you will land whichever side of the ball.
Establish and maintain a strong credibility
The most important factor to consider when building a strong relationship with the bank is your credibility. When you’ve earned the bank’s trust and you’ve presented your strategies well, then working on maintaining a strong credibility should never be a problem. However, there are major things to remember to keep your intentions real.
Keep your financial standing realistic. Banks are no fools. They know what your business is up to. Don’t surprise the bank with your change of direction, sale of major asset and faults in your financial information. In case these things happen, remember the point as mentioned here: let the bank know the ups and downs of the business. You can only be pleased with result of your honesty and valuation of the relationship.
