What a Banker Wants to See in You

A good banking relationship serves both the bank and the customer. To the bank, a credit request is an opportunity. If it doesn't loan to its profit-maximizing potential it will lose earnings (business customers pay higher interest than the bank's principal investment alternative, government securities). 

The bank's primary need is to be repaid, and the customer's opportunity is to meet that need. How can you convince a bank that you'll pay the loan back? Be professional, prepared, and truly informed about the industry or niche you wish to enter. Keep in mind you are dealing with people in an industry that has an emotional bias. That opens another avenue to success: Psychology. 

I'm certainly not trying to diminish the seriousness of developing a valuable, lasting relationship with a bank by discussing it in a psychological context. What I do seek to emphasize is that bankers sometimes make decisions based on both financial and non-financial considerations. To get a banker's attention, equip yourself with all the knowledge and savvy possible. 

Put on your best face by conducting yourself in a way that disguises your need for credit. Money is more difficult to get when you need it, so if you come across as if you don't need it, a banker is more likely to give it to you. Your odds improve when you appear unemotional, businesslike, and fully able to survive with or without the bank's money. 

Every bank is a good bank when you don't need one. Determine the value of a banking relationship during your important and sometimes difficult entrepreneurial crossroads. If your bank is there when you need it most, it deserves your highest loyalty. Give it. If it's not there when you need it, or if they change the rules frequently, go somewhere else. 

When you join forces with your banker don't betray his or her confidence. Be a responsible and responsive communicator. Update your banker regularly, not just when the news is good. Build confidence that, above all, you're a good communicator and a person of honesty and integrity. 

Several successful years down the road you may wish to develop a secondary banking relationship. Bankers are interested in new business, and it won't hurt a bit to hatch some of your eggs in a new basket. Remember, bankers are emotional, so creating a little competition often works well.