Entrepreneur, how to make your banker your ally?

Entrepreneur, how to make your banker your ally?

When you embark on the creation of a business, it is not always easy to find real support in the person of your banker. We have more the impression of being in the inferior position of someone who asks for something and who has not yet proven himself. So how do you adopt the right habits from the start to build a relationship of trust in which you can count on him as an ally? Here are 7 tips for having a fulfilling relationship with your client advisor.

Insofar as a serene and rewarding relationship can be viable when each of the parties expresses their desires and takes into account the desires of the other, let’s start by looking at the deep desires and aspirations of the professional customer adviser of your bank.

Tip N°1 – Be transparent // The banker likes transparency (well, especially yours)

It is not a priori there to put a spoke in your wheels but to be your partner. You can in principle trust him, if he has you in the right place, he will be able to accompany you in good times and in bad times.

Above all, he likes to know as much as possible about you and your business. Be as honest and transparent with him as possible. In any case, you will have to provide him with your detailed business plan and your forecast balance sheet. Try not to rig your market’s figures too much, besides, you know it well, they sometimes know them better than you do… Each bank has job descriptions which show them the average figures and market trends. It’s very easy for your banker to tell if you’ve been a little too optimistic.

Tip N°2 – Be a good manager//The banker likes good managers

For him, a good client is above all a client who knows how to manage a business. He is someone who knows how to look after his working capital and his cash flow. He is also someone who does not claim the reimbursement of expenses at all costs while he is always overdrawn.

Most cases of mismanagement occur when charges are too high or managers pay themselves more than the company can afford. In fact, the accumulation of bank charges often comes from poor management.

For the banker, being a good manager means putting the interests of his company before his own (and therefore not paying himself a salary that jeopardizes his company’s cash flow).

Tip N°3 – Be constant //The banker likes regularity

Rather far-sighted and cautious by nature, he will appreciate seeing you regularly to take stock. He also likes you to be consistent and predictable, for example: pay yourself a small regular salary rather than a big one from time to time. He will be greatly reassured.

Tip N°4 – Anticipate //The banker likes to know what will happen

Like many people, ultimately, he hates being presented with a fait accompli. If you know that you are going to face a problem and be overdrawn, warn him beforehand and explain to him why. Also tell him when and how you will make up for this overdraft.

At the same time, you can also anticipate by negotiating certain things from the start, such as the application fees and your loan rate, for example.

Tip N°5 – Admit that he has to earn a living//The banker is a service provider like any other

Sometimes, it is enough to understand it and to admit it to relax. Your banker is not a philanthropist and he must also make money for his business, like you ultimately. He earns it mainly in two ways: with the fixed costs of your management package and with the variable costs of your operations outside the package.

Contrary to what one might think, credit is not really a source of income for the bank, but rather a good source of loyalty. The idea is to accept that it is give and take. If you’re okay with him making money with you, he’ll be okay with you making money with him.

Tip N°6 – Be a friendly human//The banker is a human being too

Like you, he has a little beating heart under his gray jacket and he can have his good days and his bad days. He likes the little attentions provided they are not subject to conditions and appreciates having friendly relations with his clients, even and especially when he manages an average of 200 professional accounts like yours. On the other hand, he hates being pressured and does not appreciate tense situations. So treat it well, it will always be in your interest to have it support you.

Tip N°7 – Choose your bank wisely//The banker manages well what he knows well

Do not hesitate to choose the same agency as other companies in your sector because you will come across people who understand your business.

In general, turn instead to banks specializing in professional accounts such as CIC or Banque Populaire, where you will have better conditions and contacts accustomed to entrepreneurs.

So my advice, today: write him a short note to ask him if he had a good holiday and to tell him about your plans for the start of the school year!

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