Tips For Developing a Great Relationship With Your Bank

Ask the Expert, Steve Kring

Having a good relationship with my bank is important for my business. Can you share some tips for how I can get to know my bank better?

Banks play a major role in providing small businesses access to capital to fund operations, purchase fixed assets and to grow the business. That’s why it is so important for business owners to have a good relationship with their bank. We realize this is a two way street, and offer the following tips:

  1. Schedule regular meetings with your banker to discuss financial results, competition, expectations, challenges and opportunities facing your business. It will be easier and faster to obtain financing if your bank is well informed and up to date on your business, industry and financials.
  2. Ask your bank questions about products and services that could improve efficiencies. Hopefully, your banker is proactively doing this, but if he or she is not, it shows that you are looking for ways to improve your bottom line.
  3. Always keep your bank informed about problems or issues you may be having. The last thing anyone wants is to be surprised, especially a banker. Typically it’s too late to help a business when problems are not disclosed in a timely manner.
  4. Ask the bank to explain loan structure and what financial ratios are important. Answers to these questions will shed light on what is important to the bank and assist the owner in making future decisions.