Why Building a Relationship with your Lender is Important
There are many benefits of building a good relationship with your lender, the most obvious one being the opportunity of securing loans much quicker. For instance, if you have a brilliant working relationship with your lending organization, you would not have to apply for more funds again and again to meet your business’ growing financial requirements. In fact, maintaining constant communication with the lender would make sure that they are aware of your business and realize how well it is doing in the market. This would give you access to working capital as needed, in turn making sure that your business’ financial situation remains stable.
Building a solid liaison with your lender would also allow them to offer you other types of funding options that could benefit your business in a better way. For instance, if you have availed a short-term business loan and built a great relationship with the lender, your lending institute can offer you other business financing alternatives, such as property loan or equipment secured loan, which might be more suited to your business’ needs. Apparently, maintaining a good bond with your lender can never go wrong.
How to Build a Relationship with your Lender
- Communicate Often: This is the most important part of building a relationship. Communicate with your lender regularly and share information about your business that would let them know how your company is doing. You can also tell them about your future business plans and how you expect the turnover to grow in the upcoming days. Make sure that your lender has a good idea of your targeted customers as well as how your business works too.
- Arrange Meet-Ups: Face-to-face meetings are great tools to build trust and add a sense of reliability to your relationship. Although the modern modes of communication like emailing and phone calls work too, regular personal meet-ups, such as once every two or three months, would make sure that you build a genuinely lasting relationship. It does not necessarily have to be a formal meeting; a casual lunch at a restaurant would also do.
Do Not Overdo: Never try to go over the top with your plans to build a good relationship with your lender. Building trust and loyalty take time, so do not rush with communication or meetings. Give enough room to your lender to be familiar with your business and aim to build steady credibility for the long term.