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Banking
Choosing a good banking institution and developing a good working relationship with a banking advisor is critical for any size, new and growing business. Your bank is your business’s most important supplier.
- Shop around for a compatible bank. Find a banking advisor who is genuinely interested in your business, whether large or very small.
- Investigate the banks that are there solely there for helping businesses or business divisions of the larger banks.
- Be prepared with all the information the bank may need. Have a forward looking business plan, cash forecast, and keep it simple.
- Arrange for a line of credit before you need one. Do this up front in the growing and ‘happy’ stage, not in the panic stage. If you do not use it, great; it is there if you need it.
- For newer businesses, the bank may require a personal guarantee. Approach this in the early negotiations. You may want to negotiate the limit or as to when to eliminate it.
After your meeting with your banker, put down all that was discussed and what was agreed upon in writing and send this information to the banker.
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