Forums: Discussions for entrepreneurs and small business.

As a Business Banker, I deal with businesses of all types all day long.  One thing that I see all businesses share in common (sole props with $0 to my millionaire attorney accounts) is that they all can use access to cheap money to grow their business.  This comes into play for things such as cash flow to meet deadlines when receivables are taking too long to be paid and even purchasing equipment.  The sad truth is that many people usually put off the importance of this until "tomorrow" but when they need the $, it is like they needed it from since "yesterday".  I cannot stress the importance of having a good relationship with the bank?

-------------------------

Thanks for explaining the importance. !

I think what the original post illustrates is the importance of having frequent, clear communications with your banker. I used to be a commercial banker and I know that there is nothing bankers like less than surprises. Give your banker a heads up as to what is going on with your business. If you are thinking about a capital purchase that will need a loan, let him or her know well ahead of time.

Also, If you are having problems, let your banker know that as well. Most banks will work with customers in financial trouble. When the bank doesn’t know what is going on it assumes the worst, that you are about to commit fraud or that you are about to run away from your obligations. It’s better to keep your banker informed so that he or she is in a position to help.