Bankers change jobs more frequently than politicians stereotypically change their minds, so many may be unfamiliar with their customers and wary of extending credit even when the company is deserving. Relationships, whether personal or business, are always challenging. But there are certain things an entrepreneur can do to help create a climate that is conducive to fostering a productive, long-lasting relationship with a banker. Clear, frequent, open lines of communication are a necessary component of a strong business owner-banker relationship. Owners and bankers should communicate at least quarterly, urges Dave Brown, senior vice president at Key Bank in Utah, who speaks to some clients every week.
Bankers usually require quarterly financials, with a major review once a year.
If a loan is based on inventory or accounts receivable, monthly financials may be needed. There is more involved in communication than mailing out financials, however. Invite your banker to tour your facilities, recommends Scott Clark, author of Unleashing the Hidden Power of Your Growing Business. And, he warns, don't extend the invitation just before you ask for a loan as that will arouse suspicion. Put your comments down in writing to provide ammunition in case the banker's boss questions why something happened.