Keep communicating
Communication is key during any climate, but keeping the lines of communication open becomes of utmost importance during downtimes. Frequent communication ensures that your banker understands your business and can best assess your needs.
“It boils down to a strong relationship and ensuring they have a meaningful meeting when they get together,” says Bill Peele, executive vice president, commercial banking line of business manager, Atlanta region, SunTrust Bank.
Like in any new relationship, those first discussions can feel a bit awkward. But each time you sit down with your banker — whether during a quarterly meeting or through a monthly phone call — it becomes more of a friendship. The most basic way to begin building the relationship is by inviting your banker to visit your business, so that he or she can visualize your passion.
“A banker today takes comfort in knowing all aspects of the business and the company,” Dowell says.
From the onset, you must convey to your banker a sense of openness and eagerness to discuss the various aspects of your company. Additionally, there should be an understanding that both sides are in it for the long haul.
“A long-term relationship creates trust, and that’s what clients are looking for,” Peele says. “When they chose to go with the cheapest rate, they don’t get that high level of service that they expect. Business owners don’t want to have to tell their story over and over again; they want to have the same banker and the same bank.”
Discussing a vast amount of information will help your banker understand that you respect the partnership and are looking to the future.
“A business should be very forthcoming with financials and information, good or bad,” Dowell says.
While it’s easy to share positive news, such as unexpected revenue, some executives may find their heart racing when they think about telling their banker that a major account is hovering near bankruptcy. However, discussing matters quickly and honestly can pave the road to an amicable solution. Bankers detest surprises, so ensuring that you are their first line of communication is paramount. If you choose to ride out a negative situation in silence, you run the risk of your banker hearing of your troubles in the newspaper or from a mutual friend.
“A banker would much rather learn about bad news from the client than learning about it in another way,” Dowell says.
While a banker may not be thrilled to hear of financial shortcomings, he or she will ultimately respect a client who does not hesitate to share important information.
