Mutual Trust. Number-crunching doesn’t always tell the entire story. For the owner of a small business seeking a line of credit, a strong relationship with the bank’s Relationship Managers (RM) is critical. RMs are much more likely support a company’s financing requests if they know and trust the people behind that company. Similarly, business owners need to know that their RM will offer support when needed. Always be open, honest and complete with your RM.
Competence. Clearly state the amount requested and its intended use. If potential future needs are of concern, ask about building increases into your line of credit for future growth when you need it and can make a sound business case for it. Don’t ask for more than you realistically need just because you think you can qualify for it or “in case” you need it. Such requests can raise doubts about your ability to manage credit and make it harder for the RM to justify your request by
Professionalism. A CPA with expertise in preparing and presenting loan packages will know how to present information in the most favorable light (without in any way sacrificing accuracy). In addition, by retaining the CPA, you distinguish your small businesses from others by tangibly demonstrating that you do things right and are respectful of RM’s time.
Responsiveness. Return the RM’s calls. Believe it or not, some customers don’t. Don’t be annoyed when the RM requests additional information. A request for more information is very often a positive sign. Supply requested information promptly.
RM as a Resource. Avoid insisting on a pre-conceived financing structure. The RM may make valuable suggestions such as leasing, rather than borrowing to purchase equipment and other things. If you are denied credit or approved for less than requested, a debriefing with the RM can help you understand why and how to fix the problem.
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