nterested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship.

6. Get a second opinion.

Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your request

Many business owners do not consider their banks as welcome and willing partners in their business. Yet it is an important relationship that will often affect your ability to grow and to survive periods of financial stress. You want to treat your bank like your best customer, not your worst supplier.

Working with an unwilling and unwelcome partner is obviously not a very constructive relationship. A more effective partnership with your bank can be built on some of the following ideas:

1. They will not get it.

Start by accepting that your bankers will never fully understand what you do for a living - your motivation, your interests or your circumstances. But you do have to try to get them to understand enough about you and your business plans so that they can be confident that working with you will be good for them.

Remember the bank's primary role is not to lend you money, it's to earn a return on the investments of shareholders and depositors while protecting their money.

2. It's only the money.

You will need to prove that the money is all you need. You have everything else looked after. The banker will not have to worry about your customers, your management team, your sales and marketing efforts, your operating efficiencies, your health, your marriage or anything else except the financial services you need.

3. They have a checklist.

When you meet and fill in the forms, remember the banker wants to be satisfied on four criteria:

Character - do you have a reputation of integrity and responsibility on prior financial obligations? Capital - do you have enough personally at risk in your business? Capacity - do you have the skills and resources to deliver the planned results? Collateral - if you cannot repay your loans, what assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one.

4. Reduce the risk.

You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.)

5. Think big.

The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship.

6. Get a second opinion.

Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your requests

you do for a living - your motivation, your interests or your circumstances. But you do have to try to get them to understand enough about you and your business plans so that they can be confident that working with you will be good for them.

Remember the bank's primary role is not to lend you money, it's to earn a return on the investments of shareholders and depositors while protecting their money.

2. It's only the money.

You will need to prove that the money is all you need. You have everything else looked after. The banker will not have to worry about your customers, your management team, your sales and marketing efforts, your operating efficiencies, your health, your marriage or anything else except the financial services you need.

3. They have a checklist.

When you meet and fill in the forms, remember the banker wants to be satisfied on four criteria:

Character - do you have a reputation of integrity and responsibility on prior financial obligations? Capital - do you have enough personally at risk in your business? Capacity - do you have the skills and resources to deliver the planned results? Collateral - if you cannot repay your loans, what assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one.

4. Reduce the risk.

You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.)

5. Think big.

The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship.

6. Get a second opinion.

Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your request

anagement team, your sales and marketing efforts, your operating efficiencies, your health, your marriage or anything else except the financial services you need.

3. They have a checklist.

When you meet and fill in the forms, remember the banker wants to be satisfied on four criteria:

Character - do you have a reputation of integrity and responsibility on prior financial obligations? Capital - do you have enough personally at risk in your business? Capacity - do you have the skills and resources to deliver the planned results? Collateral - if you cannot repay your loans, what assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one.

4. Reduce the risk.

You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.)

5. Think big.

The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship.

6. Get a second opinion.

Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your request

hat assets are available to cover them? Good answers on these points will provide the start to a relationship with a willing partner instead of a reluctant one.

4. Reduce the risk.

You may be stimulated by risk and reward, your banker is not. It is a very conservative career choice. Regardless of how good you and your plans are, the banker will still want personal guarantees. That means he gets your house if you fail. (And I have never met a banker who found it amusing to suggest that you should get his house if you succeed.)

5. Think big.

The more you need, the more interested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship.

6. Get a second opinion.

Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your request

nterested they'll be and you'll likely get better terms. (The only time I had no personal guarantees was when our loans were at $4.5 million.) If you're starting small then describe your growth plans and your intention to build a strong, long term banking relationship.

6. Get a second opinion.

Bankers love to win business away from other banks. (That's good for their career plans.) So check out the competition anytime you need new financing or if your current bank is not serving you well. Just be sincere and ready to change. One banker asked me directly, "If I meet all your requests will you move to my bank?" I said, "Yes". He delivered and so did we.

7. It's not a people business.

It's a numbers business and you cannot negotiate with a computer. That friendly, understanding person you're talking to does not make the decisions. Your numbers get fed into some obscure computer program and the answers (or more questions) pop out. They are not negotiable. A good banking relationship means that you will be told what numbers are required to get favourable answers.

8. Manage your numbers

Make sure your business plan computes and gives results that are attractive to investors and to lenders. Then manage the numbers to deliver the results and stay within the limits set by the bank. Read the fine print to be sure you don't miss any requirements to maintain financial ratios or any restrictions on payments to shareholders. Deliver financial reports as required, but also be sure to provide your own analysis and explanations before someone else does. You don't want that computer to set off alarms.

9. No surprises, please.

Bad news is never well received, but the reaction will be much worse if it's also a surprise. And no news will only make them worry.

Keep your bankers aware of what might go wrong and what you plan to do about it. Then keep them current as things evolve so they get used to your ever-changing circumstances and how you are handling them. (Hopefully, well.) Avoid going back with a new plan too soon or too often. And try to plan well ahead of any request for more financing.

10. People still matter.

The personal connection is still a very important part of a good relationship with your bank. Part of managing that relationship is to be sure that you are not entirely dependent on just one contact. If it lasts, the contact will change and you need to know someone else to maintain continuity of the relationship. Stay connected at several levels.

Your banking relationship needs to be strong to withstand the inevitable hard times that hit any business. A welcome and willing partner should help you weather those occasional storms.