If financial issues are keeping you up at night, the solution could be as simple as sitting down with your banker.
“I want to sleep well at night, and I want you to sleep well at night,” says Sue Zazon, the president and CEO of FirstMerit Bank’s Columbus Region. “The only way to do that is by talking. It’s when people don’t talk to one another that they start to guess. When a client isn’t communicating with me, I assume the worst. Likewise, if the bank isn’t talking to its clients, those clients will often jump to the conclusion that things aren’t going well. The bank needs to communicate that it understands whatever problem the client is facing and is willing to help.”
Smart Business spoke with Zazon about the business benefits of improving your relationship with your banker.
What are the five keys to having a better relationship with your banker?
Clear and direct communication is key. In order to have a good relationship, businesses should realize how important it is to have a banker who communicates clearly. Make sure you and your banker speak the same language. Don’t guess what your banker is saying. Make sure your relationship is strong enough that you can ask for clarification, or talk things over to make sure you are on the same page.
Not all relationships are created equal. You need to seek out a banker you can count on. Often, bankers are seen as fair-weather lenders; they’re there when times are easy, but as soon as times get tough, they’re not available to help. If you have a good relationship with your banker and have established trust, that is valuable. Your banker should stand up for you, be proactive, help your business be successful and be your advocate within the bank.
A banker must be knowledgeable about your business. This is fundamentally critical to all relationships. Not only does your banker need to understand your business, he or she needs to understand your competition and how your operations work. This can be accomplished by inviting your banker to tour your facility or by scheduling regular meetings. The more a banker knows about your company, specifically, the better that banker can help you, whether it’s through getting additional capital or restructuring debt.
Meet senior management. If you are my client, I want you to meet as many of my team members as possible. I want you to meet my banking assistant, my portfolio banker, my credit officer and my regional CEO. If I introduce you to everybody, you become more comfortable with the business/bank relationship as a whole. Additionally, if I’m unavailable, there are other people in the organization you know and trust that can support you.
A banker should be a trusted adviser. Businesses should have a good advisory team, consisting of a lawyer, banker and accountant. Those three professionals should work together in concert with you to make strategic decisions and plans, as well as develop a company strategy that will get your business to the next level. Giving your banker that trusted adviser status helps build the relationship and drive business success. If you don’t include your banker as part of your advisory team, you’re missing a vital part of the equation.
