6 Ways to Build a Better Relationship With Your Bank

When you’re looking to start a business, you’re going to need some capital in order to start your business. Even if you have the greatest idea in the world, it can’t go anywhere unless it has some financing to get it off the ground.

There are plenty of different ways to obtain that financing: looking for investors, finding a partner, asking your family members, or asking for a loan. Obtaining a loan is a long, arduous process that involves you checking out numerous lenders.

Secure banking

One of the tried and true places to look first is your local bank. Bank loans have been booming over the past few years, so it’s an ideal place to start.

Getting a loan from your bank may not be just a one-stop activity though. It helps to have a great relationship with your bank, staying on their good side for the future.

Below, we’re going to outline some of the ways you can maintain a strong relationship with your bank. You may not be BFFs, but you may be close.

Be Open About Your Goals

With your business, you want to make sure you’re an open book. It’s more than making casual conversation, but it’s also a way to guarantee that you’re getting the best help possible.

The more the bank knows about what you’re trying to accomplish, the better they can help. They may have insights on any hurdles you may have to jump or experience helping others in a certain situation. Keep them updated and make them aware of any changes or decisions that you’re making. It always feels great to have someone in your corner as well.

Lay Out Your Business Plan

Even though it may seem obvious, there are some people who will try to hide certain financial or budgetary information from a lender.

Opening up your books is an easy way to gain trust and establish a quick relationship. Plus, they can help and advise on certain business plan strategies. The more open you are with them, the better help you’re going to be receiving in the future.

Even if you don’t have the credit score you want, they may be able to help you out here and there with certain rates of loan terms.

Stay in Contact

Remember how we said that getting a loan wasn’t just a one-stop activity? That’s because you need to stay in regular contact with your lender and bank. This doesn’t mean you need to be calling them every week, giving them an update on how the business is going.

A good general rule is making sure to reach out at least once a quarter. Share any news (good and bad) and overall progress updates. You can also share any changes you may see with your business, seeking out their advice and keeping them aware of the new developments.

If you have bad news, you’d rather not let your lender fight out through a third-party. Be proactive with your communication.

Be an Active Member

It’s important to remember that your advisor is not the bank, they are your access point to the bank as a whole. THey are representing you to the bank and you want to make sure you’re getting the best representation possible.

Ask lots of questions, find out what changes could be made, and see what they’re doing to represent you to the rest of the bank. You want to make sure you’re getting the best attention and customer service possible. It’s your business, you don’t want to cast it to the side. 

Remain Consistent Financially

It may come as a surprise, but making your loan payments on time is a good thing for you, your business, and your relationship with your bank. Your advisor is going to respect you more and represent you better if he can show you’ve got solid financial standing.

If for some reason you can’t make your payments on time, be sure to reach out ahead of time and speak with them to let them know why or see how they can help.

Add the Personal Touch

Throughout all the numbers, spreadsheets, business plans, meetings, and more, advisors are still people. While it is their job to provide great customer service, it’s also on your shoulders to be a good customer.

Ask them about their life, their kids, where they went to school, and more. Include them on your Christmas mailing list and drop a birthday card off if you can remember it. Adding a little personal touch never hurts. 

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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