Banking Relationships Ensure That You Have Operating Capital
Banking Relationships Are Paramount in Today’s World
In today’s fast paced world of business, having a good, solid relationship with your banker is important! We always recommend that you use a community bank as opposed to a large commercial bank. Why? Well, the community bank is in the community– the banker and his/her staff live in the same community that you do. They (community bankers) want your community to do well and are in the right place to provide the funding to help you grow and mature your business.
It is important that you know someone at the bank that can make a binding decision if and when you need additional fiscal resources for your business. We have had a couple of banks since we have been in business. One bank was OK– however, the bank president never tried to learn about our business, never tried to help us grow and increase our revenue and never so much as offered us a free cup of coffee. Now, did we need the free cup of coffee– no, not really! However, when we relocated back to Texas, we were inundated with free cups of coffee, free breakfasts and lunches with many bankers– all trying to get our business. It took us longer than it should have, but we finally found a community bank that did offer us a free cup of coffee!!!!!! We have used that bank for the past several years, much to the delight of both the banker and our firm.
Bankers All Went To the Same School!
Bankers all went to the same school! Irrespective of where the banker did his/her college work, their “banking” school taught them that a good deal for the bank is a good deal for the client. Banks are in the business to make money– they loan money, gather interest and fees and help you grow your business. Lines of credit, special loans, specific times of loans are all tools that the banker has to help you grow your business.
However, if the deal is not solid, you don’t have collateral to put up in case the loan “goes bad”, most bankers will not make the loan. Some bankers are more willing than others to “take a chance”, however, the chance is normally small, because the bank is not in the business of loosing money!
We helped a client establish a banking relationship with a bank here in Fort Worth. The banker was willing to help, and did. The client did not have a lot of money to use as collateral, however, after some discussion, the banker and client did establish a relationship. The relationship is still going strong today!
Get to Know Your Community Banker
The way to know your community banker is to walk in and ask to see he/she! Most times, they will be happy to visit with you and see how the bank can help you grow. Now, you may end up with a staffer or other junior bank officer after you have talked with the bank president, however, you have introduced yourself, explained what it is that you are seeking and then see if the bank can help. Some banks specialize in certain areas– if you go to a bank that specializes in medical professionals and you are wanting a manufacturing equipment loan, the banker may state that the bank does not provide those type of loans. Fair enough– keep trying!
Find a banker and get to know he/she! You will be happy with the results!