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Need a Business Loan? Get In Bed with Your Banker
Posted By Barry Moltz On March 25, 2014 @ 8:00 am In Loans | 7 Comments
Most small businesses still need banks. They provide valuable financial services daily for companies. Banks can still be a major source of capital for the promising business.
How do you make sure that they are there when you need them?
Get your business in bed with your banker! While this many not conjure up a pleasant image, it must be part of your strategy. Getting the banker to know your company’s capital requirements must be established far in advance of when you may need them. Here is what to do and why it works:
Open checking and money market accounts at the bank. Use their merchant, ACH and wire services. Pay fees to use their services.
Why it works: Bank employees are trained to help customers and you want to be a part of that group as soon as possible.
Be seen at the bank and get to know the branch manager and key staff. Visit at least a few times a month. Talk to them about the bank, their family and your business.
Why it works: People do business with other people they know, like, and trust.
Go to the events that the banks sponsors locally. Show support for their causes. Get on joint committees.
Why it works: You can demonstrate what it is like to work with you and share a common goal.
Sit down with loan officers before capital is needed. Show them your sales and profit projections. Impress them with your knowledge of the financial statements. Revisit them when you make progress toward your goals.
Why it works: Numbers are power. They are easy to take to a loan committee. Bankers trust business people that understand them.
This may be a home equity loan (or similar secured asset) to be used by your company. Pay the loan back on time and then try to increase it.
Why it works: This builds a reputable track record the bank can reference.
Bankers like numbers that increase.
Why it works: A high credit score will show that you can be trusted to borrow money. They believe that past performance predicts the future.
Everyone loves referrals. Be responsible in helping the bank grow their business.
Why it works: If you help them, they are more likely to help you.
It’s time to apply for the bigger loan for your company. This can be a term note or line of credit.
Why it works: Because the bank now trusts you and your company.
How have you got a banker in bed with you to get a loan?
This article, provided by Nextiva, is republished through a content distribution agreement. The original can be found here .
Banker  Photo via Shutterstock
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URL to article: http://smallbiztrends.com/2014/03/need-a-business-loan.html
URLs in this post:
 can be found here: http://www.nextiva.com/voip/how-to-get-in-bed-with-your-banker.html
 Banker: http://www.shutterstock.com/pic-179562986/stock-photo-young-business-man-fixes-his-chest-pocket-napkin-while-looking-at-it-in-a-retro-hotel-room.html