That is a Lot of Paperwork-- Do You REALLY Want Me To Do It?

That is a Lot of Paperwork– Do You REALLY Want Me To Do It?

Posted April 22, 2020

BACKGROUND

The COVID-19 pandemic has caused a lot of anxt and fear with many business owners. The title of today’s blog was given by a Vice President of a large regional bank when his client asked for help on applying for some of the government stimulus money. The bank client, a small business owner had an existing business relationship with the bank– for many years– and his family had even a longer relationship with this particular bank. Now, the business owner needed help and this was the response from his banker.

DISCUSSION

A good,solid banking relationship is one of the most treasured assets that any business owner can possess. As many people are finding out today, not having a good business relationship with a banker is fatal, especially at times like this when you need financial help.

If you don’t have a business banker relationship, now is the time to begin. Actually, you should have begun 6 months ago, however, let’s go if today is the day. We recommend finding a good community bank to have discussions with. There are many community banks– however, all are not equal. For starters, a referral from your Rotary or service club is a good place to begin. Perhaps a member of your church or synagogue may be willing to provide a couple of references for you to call. The key is to make some contacts and go visit with the banker. Explain what it is that your company does and how the bank may help you.

Our experience is that most bankers are willing to help. The banking business is very competitive in many parts of the country. If one banker is not interested, as it appears that this banker was in our article, there are 20 more that are waiting for your business. Recall that all bankers went to the same school– all of them! A good deal at one bank is normally a good deal at another bank. Some banks are more willing to take risks than others, but if the deal is solid, most bankers will do it. Conversely, if the deal is at best shaky or weak, most bankers will not participate. Bankers want to be sure that they will get their money back, with interest. They are not interested in trucks, machines, restaurant chairs and tables and 100 million widgets– all they want is their money back. Remember that.

FIND A NEW BANKER

Bankers want to help– after all, their job is to loan money, get paid interest and loan more. However, when an experience such as what occurred above happens, one is soured on banks. OK, things happen– it is tough to be treated poorly, however, there are many other bankers which will be wanting to help. Get up, dust off and go out and find them.

The banker that gave this client the “too tough to do” advice is a long term, experienced banker. However, if we received that answer, we would immediately have gone and found another banker. In fact, we did that about a year ago– not exactly this experience, but one similar. We were long time bank customers, but after treated shabbily, we moved also. We never looked back and are much happier with the new banking relationship in a Texas Community Bank. Don’t be afraid to go out and check things out– you might be amazed at what you find.