Make your ‘small business – bank’ relationship strong from the start

Building a strong relationship with your bank will pay off in the long-run. As the relationship between your business and the bank progresses, the bank accumulates information about your business.  This makes it easier for the bank to provide sensible advice and for you to assess risks when, for example making a major purchase or entering a new market.

Experience shows how the benefits work in various ways:
Lower lending costs: The longer the relationship, the more likely the price of a loan will be lower.
Credit limit increases: The amount of finance the bank is willing to provide (as well as the conditions attached) tends to increase over time as the relationship matures.
Positive market impression: A long, stable, good-working relationship sends positive signals to the market about the credit-worthiness of your business.
Personal contacting: beyond the economic benefits of managing a long-term relationship with your bank, your personal contacts with familiar bank employees encourages a mutual trust and builds friendship.
Having your bank in the ‘heart’ of your day-to-day business, may well lead to business opportunities that otherwise you might never have thought of.
Don’t forget: The ‘small business – bank’ relationship is based on a two-way information exchange and a sound working partnership that addresses both the needs of the small business and the bank.   

Did you like this article?
Subscribe to ReplayBusiness to receive all new postings straight to your inbox!


Tell us what you think!
We truly encourage your participation!
Contact us:

This is how we all learn, share and acquire knowledge!

Follow us and retweet to your followers:
Replay Business © 2011 Costas Stabolas| Designed by