That is one reason why bankers and entrepreneurs so often clash. The entrepreneur asks the banker to take investor risk, while the banker's position is that he can only take credit risk because of the limited potential payoff. Until the banker and entrepreneur speak on the same wavelength, and understand each other's vantage point, a good relationship can't exist. When the news is bad, owners tend to shut down lines of communication, thinking the banker will be upset. While the banker may understandably be concerned, his reaction will be far less negative than if he is not told what is going on.
Nothing upsets a banker more than surprises.
Not all weaknesses rest with the business owner, however. 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.