By Evan Vitale
One of the things small business owners fear (perhaps), is approaching your bank and asking for a loan. It’s difficult for many and there’s always the worry that you’ll be rejected. That can be difficult for many, especially if you need a credit line to expand; make payroll or cover other expenses, etc.
The best time to approach your bank about a loan is when you don’t need a loan.
First, if you haven’t done so, you need to start creating a business relationship with your bank business manager or your branch manager. Go in and introduce yourself. Talk to them about your business; what you’re doing and how you’re doing. Mostly likely, they’ll ask you if there’s anything they can do to help you.
Remember, bank managers are human. They have a job to do and keep this in mind: banks only make money by lending money.
A business friend of mine has a great relationship with his branch manager. Instead of making deposits electronically or via the drive-thru window, he goes in the bank and says “hi” to everyone, including the branch manager.
Within six months – without asking for a loan – the bank waived a $30,000 line of credit in front of him.
If this happens to you…take it! Then, you’ll have that credit line when you need it. My friend uses his credit line from time to time and pays it off when receivables arrive. Your credit line will increase and your business credit score will too.
If you are just starting out, the relationship is the way to begin, but if you see a need on the horizon, let your branch manager know and see if there’s anything they can do to help you. If so, then great! If not, then you have time to seek out other financial resources.
More on this topic in future blog posts!