The Constant Entrepreneur: Advice for Running a Productive Business

Your Best Friend – The Banker

I have established wonderful relationships with bankers, mainly business lenders, from many of the banks that serve the Cleveland market. I try to get together with at least one banker a week for breakfast, lunch, or coffee, just to chat.

This morning I had breakfast with a lender from one of the area’s regional banks. We talked at lenght about how businesses use and abuse their banking relationships.

The most valuable advice that came from the discussion is this. Keep communicating with your banker. Talk with the banker when times are good. But, more importantly, talk with your banker when things are not going well. Most banks will work with you if you have temporary trouble paying a loan – providing that you have talked with the lender as soon as you realize a potential problem. In many cases they will help to restructure the loan to reduce monthly payments, if needed. If, however, you just don’t make payments on the loan, and don’t answer phone calls from the bank, the bank will be much quicker to go after you for the money and will not be willing to work with you.

My friend said that the later scenario is all too common.

Make your banker your ally rather than “the enemy” by talking with them. Take your banker to lunch one a quarter and help him/her to really understand you and your business. Send your banker your financial statements each month (you do produce monthly statements, don’t you?).

Will Limkemann
Limkemann Business Advisors
440-871-0976
www.neobizadvisor.com