Importance of ‘connections’ – even in the Banking Industry

Not all banks or lenders are created equally. Connecting to a ‘small’ or ‘large’ bank, built on a more human approach and personal relationship is becoming harder and harder to find. Even if there is a personal connection gained with a banker – the confines of tightening industry and credit guidelines, and institutions creating a fast or streamlined system to expeditiously make decisions, effectively rules out human touch!

Finding a helpful hand to better manage the abundance of available information, and to avoid predatory practices can be very difficult and quite overwhelming for a current, new, or prospective business owner.

From a seasoned lender, there are a few helpful hints and low cost resources for those who are in the market to sell, buy or function as a business owner:

HINT: Interview current and prospective bankers.

• Make sure the bank actively works with the type of loan needed or can come up with solutions that work at their Bank.
• Make sure the bank generally understands the business, history, businesses direction/goals and industry.
• Shop! This assumes each lender is not running a credit report every time a connection is made with a new banker, there is no hard and fast rule against shopping different banks at the onset of buying a business.

RESOURCE: Small Business Development Center.

• Throughout the Nation, this Non-Profit is a growing resource for prospective and existing business owners.
• As indicated, this is a free resource which can remove the unknowns, become an ongoing resource, and advocate for the business owner to various commercial lenders, sellers, brokers, etc.

RESOURCE: Brokers can provide many intrinsic benefits; brokers wear many hats.

• SELLER SIDE: Guide the seller on marketing, listing, and preparation to sell a business.
• BUYER SIDE: Negotiates and leverages relationships to improve likelihood of a successful acquisition.
• LENDING: Locates a lender for you to find the best price (lowest cost) and best turn-time for finalizing your loan.

In the midst of losing personal touch in the banking and lending industry, these tools will help a loan applicant gain control to better navigate and expedite the lending process for buying or running a business.