The relationship between a business and their lender is usually pretty standard, there is a lot of interaction in the first instance and once the loan is agreed, the company pays back what they owe at an agreed rate. But if you are keen on making the most of your relationship with your lender, there are some steps you can take to ensure you have the best chance of building a lasting relationship between your business and lender.
In this article, we will discuss some of the most significant benefits having a lasting relationship with your lender can have for your business, as well as some of the simplest ways to build the initial trust needed for a good relationship.
Benefits of Building a Relationship with My Lender?
There are several benefits to building a lasting relationship with your lender, some of which can potentially give your business access to working capital at a much quicker rate. Listed below are some of the benefits your business can expect to see if you do begin to work on a relationship with your lender:
- Quick and Easy Access to Working Capital – If you already have a brilliant working relationship between your company and lender, you will have access to working capital much quicker than if you needed to reapply through another company. Maintaining constant communication with your lender means that they are fully aware of your situation, giving you access to working capital, providing your financial situation is stable.
- Increased Level of Understanding – If your lender understands your business inside out, you could be eligible for other forms of funding which may be more suited to your businesses sector and needs. For example, your business may currently have a short term business loan with a lender but could be more suited to other forms of finance, such as a property loan or business asset finance.
How Can I Build A Relationship with My Lender?
With so many benefits to building a lasting relationship with your lender, you may be wondering just how you can start working your way towards such an arrangement. There are a few simple steps you can take, to begin building a fantastic relationship with your lender, here are a few of our suggestions:
- Communicate and Share Information – The most straightforward way to start building a relationship with your lender is to communicate often with them, sharing information that is important to your business. Don’t be afraid to let your lender know your business plans, as knowledge of your business is vital for your lender when they’re trying to get to grips with how your company works. Ensure that your lender has a vast knowledge of your customers, who you may be looking to target in the future and any services you currently offer or are looking to provide in the future. Keeping constant communication with your lender can open up a whole host of opportunities for your business to take advantage of.
- Set Up Regular Face to Face Meetings – Whilst keeping in touch over the phone and via email are the preferred methods of contact in this day and age, having regular face to face meetings with your lender is advisable if you are looking to build a genuine relationship. Setting up a quarterly or half-yearly meeting with your lender, alongside having regular contact on the phone and via email, is a great way to make genuinely lasting relationships. Putting a face to a name goes a long way when trying to build a relationship, so inviting your lender down for a meeting in person, whether that be at your offices or even at a restaurant for lunch, is a great way to build a relationship which is sure to last.
- Don’t Force It – After reading this article and finding out all the benefits your business could be taking advantage of, it can be tempting to go ahead and begin building a relationship with your lender immediately. Whilst you can start putting plans together on how your business and lender can start building a lasting relationship, don’t rush into things and try and force a relationship right from the offset. As a business owner, you’ll already know that building relationships with your customers can take time, and it’s no different when trying to build a great working relationship between yourself and your lender.
As experienced commercial finance brokers, the team at Ping Finance know just how important it is to build genuine and lasting relationships with lenders. The benefits a business can expect to see from having a great relationship with their lender can give your business the boost it needs to grow even further. If you are looking for a short term business loan for your company, why not get in touch with the team at Ping Finance today? Our team of friendly experts are on hand to help you start building the perfect relationship with your new lender today.