Yes, we agree with you, banks do not win popularity contests. Yet, it is true that a good relationship with the bank may be one of your biggest advantages insofar as you balance it skilfully. Armed with knowledge and a strategic approach, you can establish a relationship of trust with the bank, which will significantly contribute to the development of your business.
Starting from the loan application itself, due to the vague, complicated, and lengthy procedure of granting a loan as seen by entrepreneurs, cooperation with banks most often results in frustration and dissatisfaction. Although their objections are not always unfounded, they are usually a consequence of lack of understanding of the way in which banks process the applications for funding and how they perceive a client.
For sound decision-making on funding, the bank must have enough information on the company in order to analyze the business and the adjoining risks in a quick and comprehensive manner. For this process, the task of the finance director is to:
Build a rapport with key employees and higher levels of decision-making in the bank,
Comprehensively and regularly inform the bank on all major business segments,
Ensure a credible business plan,
Arrange optimal conditions and a financing structure,
Be informed of new banking products and favorable financing options.
By building mutual trust, the bank becomes a partner and the interrelationship thereby becomes a valuable asset of the entrepreneur.
Armed with knowledge and a strategic approach, you can establish a relationship of trust with the bank, which will significantly contribute to the development of your business.