With most of our banking online now we often forget that there are still people in a bank! There are still bank managers and relationship managers and they are critical to your financial success when it comes to your banking and finance needs. While computers do much of our assessments and banking, there is still a human element and having the right relationship with key banking people can make all the difference.
The Golden Rule!
The golden rule of banking is ‘whoever has the gold makes the rules’ and the bank is the one with the gold! All the big banks play by the same rules so whether you like it or not if you want a great relationship with your bank then you need to understand the rules and play by them.
A raving fan will go into bat for you with limits, pricing, conditions and turnaround times. Sometimes being able to move one of these things can change everything for you. You might need cash by next week in order to buy stock and secure a big deal. However, if the bank turnaround time is 2 weeks you might not get the customer.
Having a banking manager on your side to move critical deadlines could be a game changer for you!
To turn your banker into a raving fan here are 4 ‘do’ and ‘do not’ behaviours.
Do These things
1. Keep your banker fully informed. If you are going to be a day late on a payment - tell them. Be proactive don’t hope they don’t notice these things. If your business hits hard times let the bank be the first call you make. Talk to them about the challenges you are facing and see what you can do together to make things work. Talk to them before payments are overdue. They might be able to hold off a payment for a month, refinance to make repayments lower or extend your credit.
2. Deliver on commitments. Make sure that you honour agreements. This can be anything from ensuring that you submit paperwork on time to making your repayments on time. Banking is based on consistency. They measure your future ability to pay loans on your past behaviour. So make sure that you are consistent so that they know you are reliable in the future.
3. Respond when they call. Don’t avoid calls, and don’t forget to call them back. This is a relationship like other important relationships and you need to build rapport and trust.
4. Help them out. Make sure that if they ask you for something that you are able to help. Give them what they need in order to deliver the right outcomes and service to you.
Don’t do these things
1. Mislead or lie. They will find out! Be honest about your debts, your income, and any past issues. We are all human and they understand that. There is always room to move, but if they think you are being deceptive then they will be more cautious about your level of risk to them.
2. Take the relationship for granted. This is an ongoing commitment to your time. Don’t get the loan you wanted and then move on. Continue to foster the relationship so that if you need something that was unforeseen you already have someone on your side.
3. Go over their head. Nothing damages a relationship faster than if there is a break in trust. By going over their head and discussing your problems or concerns with their manager you will erode the relationship. Make sure you try and resolve anything with them first.
4. Don’t lose your cool. Banking can be frustrating (we get it) but nothing can be gained in a relationship by losing your cool! Take a deep breath and just approach this as a problem or puzzle that needs to be solved!
Remember that your bank is a key business partner. You need to foster that relationship, keep them involved so that they can help you. We are experts in helping our clients with reporting required for banks and with relationships across all major banks we are only too happy to help you navigate this relationship. Speak to our team if you need assistance.
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