Recently, I had lunch with our banker. During the meeting, I asked her what she wanted to accomplish when meeting with her customers. She said that she wanted to know the 3 questions your banker wants answered…
3 Questions Your Banker Wants Answered
1. How are you feeling about your business and the local economy?
2. What is the outlook for the rest of the year?
3. What are you doing about it?
What actions have you already taken to address any impact? Have you identified your next steps? How will those actions impact the financial statements?
In establishing banking relationships and making loans, bankers look to the 5 Cs of Credit for guidance. The most important of those Cs is Character. Character covers not only your personal character but also your business competence. It also covers your management team.
When market conditions fluctuate, bankers want to know that you and your team are strong enough to navigate the rough waters until the economy recovers.
The challenge for business leaders is to be optimistic without being naive; realistic without being pessimistic.
How are your conversations going with your banker? Leave us a comment below.
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