Ever wondered what a bank wants from a customer? Banks may seem unreasonable at times, but the truth is, what they want is actually pretty simple! Here is our guide to be being the perfect bank customer.
Remember that bankers know numbers. They look at books all day long, it is in their blood. So they will see anomalies or mistakes quickly. When this happens, depending on how big the mistakes are it casts a shadow of doubt over you. If you don’t have a good attention to detail on your books, then exactly how good is the rest of your business. You probably got into business because you have a skill outside of accounting. So we recommend that you focus on what you are good at and in building your business, and let professionals handle your books.
By having a bookkeeper or accountant manage your bookkeeping and reporting it will be accurate and that the bank will be impressed.
2. Meet Your Covenants
We have written a few articles and blogs about this in the past, and we can’t impress the importance of this more. Covenants are the milestones or requirements that the bank asks for when providing you finance. You need to ensure that these are met, on time, every time. This will increase the confidence that your banking manager has in you and your business and can affect future finance opportunities. Make sure you take your covenants seriously and plan for their delivery.
3. Be Proactive
This isn’t the time to be shy. Get on the front foot when things are going well and also when they could be better. Talk to them with confidence about your business and its successes and plans for the future. When things aren’t going as planned and especially if you risk meeting a covenant make sure you approach the bank manager and discuss the situation. It is particularly important to do this with plenty of notice.
Keep them informed on your achievements
While it is important to keep them informed of unplanned events or outcomes, it is also good to keep them posted on your achievements. Building up long term trust and goodwill comes from them having a solid understanding of your business and achievements. Knowing that you are well planned and that you execute strong strategy builds long term confidence in you and your business and this may be important in the future when you need their help.
We are experts in helping our clients with relationship management with Bank Managers and Lenders, 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.