- Posted January 7, 2013 by
T-Time With Banks
Nearly everyone looking for a loan learns the five Cs of credit from my earlier article, which are: character (how trustworthy you are), capacity (your financial strength), capital (the amount of your own money invested in the business), collateral (assets available to back up the loan), and conditions (the state of the economy and your industry).
Most all bankers will agree that in addition to the five Cs, banking relationships are built on the three Ts:
Talk: For a relationship to thrive, the business owner needs to talk - communicate - regularly with the banker. The talk must be frank and open, even when reporting a negative development.
Time: A relationship takes time to grow. Don't rush it, and don't expect it to bear fruit immediately. Like friendships, a good banker relationship will age well over the course of its duration.
Trust: With honest, frequent communication and time, trust develops, which is the foundation of the relationship. When trust exists on both sides, the relationship has the crucial component to make it a lasting one.
In my next article article I will examine how you can manage and strengthen your position with your lender.
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