Know your banker
Youve worked hard to start and build a thriving business, but in order to take your business to the next level, you need to establish a good relationship with someone who can give you the financial support you need. A knowledgeable banker can do just that.
Finding a good fit
The first step in building a relationship with a banker is to find one with history and ties in the community, who has experience dealing with your particular type of business. This person will understand the ebb and flow of your business activities and, in turn, will be able to help you understand the financial tools needed to succeed in your industry. Make sure to also find someone you can trust and with whom you are comfortable discussing your financial details.
Maintaining a good relationship
A good banker stays abreast of issues and information relevant to your industry to better understand your business challenges. You can also help them understand your business and better serve you by keeping the lines of communication open. Talk: Like maintaining any healthy, thriving relationship, ongoing communication is the key. Tell your banker when there are changes to your business, good or bad. This will help your banker understand where your business stands in order to offer you sound financial options and help you make the right decisions for your business. Update your loan file: Make sure your loan file is as up-to-date as possible. Your loan file drives the decisions that go into approving a loan. It should be updated at least once a year and include the following: *Current financial statement for the business and any guarantors *Year-to-date profit and loss statement *Complete copy of the most recent business tax return Not only does this information help you and your banker stay connected, it is crucial if you ever find yourself in need of quick funds for your business. If your banker has your updated financial information on file, often times you can get a decision on a loan very quickly. Whatever the next level is in your business, theres a good chance your banker can help you get there and the more they know, the greater your chances for success. Return to front page
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The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest you consult your attorney, accountant, financial or tax adviser with regard to your individual situation. Entire publication. For publication information, call (907) 777-3409.