Cultivating a good relationship with your bank can be tricky when your banker keeps frustrating you.
Here‘s the secret: you need to speak their language!
Timing is key: Ask for money before your annual review and don‘t wait until you run out of money to ask for an increase in your line of credit. Pre–approve an annual amount for capital spending and make sure you have enough income to cover your payments.
And don‘t forget to feed the bank the right information – make sure your accountant helps you with financial statements and adjusts any one-time expenses.
Show that you have enough “skin in the game” and that you’re a responsible business owner.
Finally, remember the “good cop, bad cop” approach. Your loans officer is the “good cop” who turns the handle of the loan grinder, and the “bad cop” is either the credit department or the bank’s software. Your goal is to help the “good cop” convince the “bad cop” that you’re bankable!
Need help or more advice? Reach out or let us know how it goes: paul@thebusinesstherapist.com
