7 Habits of Good Business Lenders
| Posted in Bank Blogs
Shared values. Integrity. Mutual respect. They are the qualities that are essential to forming healthy and long-lasting personal relationships. They are also the same qualities that you need to demand in another relationship – your business lending relationship. A good business lender should demonstrate these 7 highly important habits:
- Take the time to understand your business. Every business is unique with different challenges, strengths, and opportunities. A good lender will take the time to learn about your business and propose solutions that respond to your unique challenges or opportunities. They will not only know the right questions to ask, but also will listen to your answers.
- Be knowledgeable. Your business lender can be even more valuable to you if they know about your industry, marketplace, and the competitive landscape that surrounds you.
- Know how you operate. One of the most important things a business lender needs to know is about the day-to-day operations of your business. For example, they should know when your business experiences cash flow shortages and how quickly you are able to collect receivables.
- Have decision-making authority or give you access to the decision makers. A good lender will have local loan decision-making authority, or be able to introduce you to those who do make decisions. This will make the lending process easier and more personal.
- Be responsive. Your business lender shouldn't just provide a loan and then leave you; they should be in regular contact with you to keep abreast about any changes or opportunities that are on the horizon for your business.
- Understand your personal goals. Your business finances are just one aspect of your financial life; you also have personal banking needs. A good lender will take the time to understand your personal goals and then introduce you to people who can help you reach them.
- Be connected. A good business lender is active in the community and as such, should have working relationships with other professional advisors and business people, making them a strong source of referrals.
It's important to remember that a good business lending relationship should never get in the way of your business, but help move it forward.