Good relations

From the time we are youngsters,
looking across the classroom at
that special someone, the idea of building a relationship becomes an
important part of our lives. As we grow
older, we wish we could know what the
“other side” might be thinking about our
relationship.

The situation is no different as we
mature and run a business. It is true that
people prefer to do business with people
they know and like. And a bad relationship will result in worse than a few tears
or a broken heart. But how does one
build a solid, lasting relationship with a
bank? One of the biggest challenges
many businesspeople face is getting to
know and trust someone in the financial
world. Like any relationship, it must be a
two-way street.

“The more familiar your banker is with
your company, the more proactively he
or she will be able to provide solutions
and be there for you when an unforeseen
event occurs,” says Mary Patton, a commercial banker with FirstMerit Bank.

Smart Business spoke with Patton
about the relationship-building process
and how to ensure you’re getting the
most out of your banking affiliations.

Who are the key people to know at a bank?

You should know your primary banking officer, who is often referred to as a
relationship manager, along with the
other key decision-makers at the bank.
These may include the credit officer, the
commercial banking manager and the
bank’s president. Your relationship manager might suggest bringing in other people on the bank’s team, too.

To start a relationship, should I first
approach a local lending officer?

You can always begin with the local
branch personnel who can refer you to
the appropriate individual based upon
your needs. Typically, this will be a business banking or commercial banking officer who will be able to meet with
you. Remember, relationships are a twoway street. It is always helpful for the
banking team to be able to visit your
business to fully understand your operation. The more the team knows about
what you do and how you do it, the
stronger the relationship.

Whom should my business bankers know
on my team?

They should know all owners and key
decision-makers as well as any key operational employees. This likely will
include the chief financial officer, controller and, perhaps, the office manager.

What should I discuss with my local bank
manager about our relationship?

It is important that the local branch
manager and his or her staff know you
and what they can do to effectively meet
your day-to-day transaction needs. This
may include change orders, special
deposit requirements or requests. They
want to foster a good relationship, too.

Typically, your relationship manager will
provide introductions to specialists who
will support your business. These specialists may include people involved
with treasury management, foreign
exchange, international or merchant
services — depending on your business
needs. Your relationship manager should
be viewed as an extension of your team.
He or she should be proactive in learning
your business and providing unique solutions to help your business succeed.
This person is an advocate for you and
should provide ongoing value.

Is it OK for me to have relationships at
more than one bank?

There are benefits to being with one
financial institution. These benefits can
include more aggressive pricing, enhanced relationships and efficiencies,
since you are only dealing with one institution. However, if your capital needs
expand due to growth, there are times in
which it would make sense to have multiple banking relationships.

How often can I call a banker before I get
annoying?

You should feel comfortable calling
your relationship manager as much as
you need to. The more they work with
you and build the relationship, they will
be positioned to bring value-added ideas
to your organization.

If I encounter an unforeseen problem in my
business, do I contact my banker?

Absolutely, your banker is your advocate, and you should be comfortable
with sharing both good and bad news
with him or her. By keeping your relationship manager informed, there may
be more solutions available to help you
get through the difficulties you are
experiencing.

MARY PATTON is a commercial banker with FirstMerit Bank. Reach her at mary.patton@firstmerit.com">href="mailto:mary.patton@firstmerit.com">mary.patton@firstmerit.com.