The New York Times:
What is most refreshing about the article on the Small Business Administration’s Web site called ‘The Benefits of Making Your Banker Your Friend‘ is that it is written from a real world perspective.
Consider the first paragraph:
‘While every business has a bank, few have a banker. That’s because bankers are too often seen as obstacles standing between an entrepreneur and the bank’s vault.’
But as the article is quick to point out, small businesses are not doing business with a building - the bank - they are working with people - the bankers. So forging a relationship is crucial.
The article says that having a good working partnership with a banker can result in a greater line of credit for the entrepreneur, lower fees and streamline paperwork (reducing the time it takes to get money).
So many small business owners have poor relationships with bankers or have no relationship at all, the article says, because they do not ‘understand the restraints and needs of bankers.’ The article goes on to offer suggestions to entrepreneurs, including these:
* Understand that the banker is not an investor. Investors are willing to take risks because of the potential payoff. Bankers are not, because they do not have an ownership stake in the business. ‘Until the banker and entrepreneur speak on the same wavelength and understand each other’s vantage point, a good relationship can’t exist.’ Carry on reading…
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