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It’s Not What You Know, It’s Who You Know

People do business with people they know and trust. But here’s an interesting fact: 8 out of 10 business owners that I talk to have a bank, but not a banker.

So, if they don’t know or trust their banker, how do they borrow money? More often than not, they’re starting from scratch, trying to build a relationship as they go, hoping to make a good first impression. 

If you need accounting and tax advice, you call your CPA. If you need legal advice, you call your attorney. If you need banking advice, do you have someone you can pick up the phone and call?  Shouldn’t you have a banker to handle banking advice too? 

Banking advice could be as simple as, “Where are interest rates for a line of credit, equipment, or mortgage loan?”

“How much can I borrow? What interest rate and terms?” 

“How much money do I have to put in? Can I afford to pay it back?”

What if you have an issue? Maybe you lost money last year. Do you have any covenants that have a certain cash flow requirement, and you didn’t meet it? Will the bank declare a default?  What are your options?

All these questions and more can be answered by a banker. The better the bank knows you and your business, the better the advice will be.

Banking issues, whether it involves a loan, a checking account, or your treasury management, shouldn’t be solved by someone on an 800 number. Your banking is personal and is best handled by someone who knows you, your company, and your specific circumstances.

So, what’s the benefit of having a relationship with your banker? You’ve weathered COVID-19, but your business is still recovering. Looking forward, you see growth opportunities. You know in your heart you’re going to need cash in the future. Increasing your line of credit to support that growth is critical. The best time to talk to your banker is before you need the money.

You may also be looking at refinancing existing debt, expanding your building, or purchasing equipment. Wouldn’t it be beneficial to talk to someone you know and trust to get your financing questions answered, uncover any pitfalls before they happen, and maximize your chances for a loan approval with a seamless process?

Plus, if you have a relationship with your banker, don’t you think your loan application might go to the top of the stack versus it being on the bottom if there’s no relationship? The same is true for a resume in an employment interview, isn’t it?

If you don’t have a relationship with a banker or have questions/concerns, schedule a free discovery call with me today. As someone with over 30 years of banking experience who is now independent of any banking organization, I can advise you on your issues and help you get connected to the right people to begin building those necessary banking relationships.

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