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The KEY on
how to maintain good banking relationships after you has received the loan.
A banker should take care of all your banking needs and you should always
keep the line of communications open. Some ways to accomplish this
are:
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It's
in your and the bank's interest to keep your business going.
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Be aware. Regularly take
your banking partners to lunch, usually monthly just to keep them up to
date, and to provide current financial information on the business, in
your geographic area and business segment.
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Bankers should have a broad
business orientation, based upon experience.
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Exchange industry trends,
marketing information, and other issues that affect your business with
your banker.
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You should review your
business plan quarterly with your banker. This is a good way to monitor
against projections.
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Have the banker visit your
place of business. Be prepared to show him your record keeping and
accounting systems.
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Banks offer an array of
financial services, such as cash management, profit sharing, and trusts.
Take advantage of these services.
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The banker should take an
active interest in your business.
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Don't wait until the last
minute before asking for financial help. It may be too late by then.
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A good
banking relationship takes time to establish. Don't change or evaluate
banking services on just a 1/8 – 1/4 point discount. The overall loss of
a good relationship could hurt your business more.
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If you
are going to have trouble meeting a payment, notify your banker in
advance.
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Banks
offer work out plans, interest only plans, and other debt relief plans,
so ask in advance if you have a problem. They would rather collect
a little than nothing and keep your business alive.
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Always
come with a solution for your financial woes. Having a good plan
and sticking to it will help you maintain that clean credit record.
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