Articles

Enhancing Your Relationship with Your Banker - Part 2

BUSINESS TIPS FROM THE EDITOR

February 2025

Richard T. Hendee, Editor
The Silver Fox Advisor

“Enhancing Your Relationship with Your Banker - Part 2 ”

In the January 2025 edition of the Silver Fox Advisor, I published Part 1 of my “Enhancing Your Relationship with Your Banker” article. In this February 2025 edition, I am including the second installment, which will conclude this series. 

Part 2 is a “Top 10 List” of things business owners should do to stand out with their bankers so they get their phone calls or e-mails returned, hopefully the same day. 

   10.  Maintain ALL insurance coverages that may be required by loan agreements and provide copies to your banker. 
     9.  Pay ALL taxes (sales taxes, payroll taxes, property taxes, franchise taxes, income taxes) on time and provide your banker proof of payments if required. 
     8.  Provide current and COMPLETE Personal Tax Returns – Including the K’1’s
     7.  Provide current and DETAILED Personal Financial Statements – Include the value of your business(s) and explain the basis of your valuation (book value, fair market value, multiple of earnings, or some other valuation). 
      6.  Provide current and COMPLETE Business Tax Returns, with all schedules. 
      5. Provide current and DETAILED Business Financial Statements - including Accounts Payable and Receivable aging schedules.
      4.  DO NOT overdraw your checking accounts.
      3.  PLAN AHEAD (give your banker enough time to review any requests and get approval if needed).
      2.  DON’T surprise your banker.
      1. Maintain an OPEN LINE of communication at all times (don’t go silent with your banker even if you have some not-so-good news to share). 

If you stop and think about these points, there is really nothing here that you would probably not expect if you were sitting on the your banker’s side of the desk!
  
If you need help with dealing with your bank or banker, I would recommend you seek an experienced business advisor, coach, consultant or mentor with a financial or business background for your Company: Contact a Silver Fox Advisor. Remember, having experience on your side always helps. 

We encourage you to visit our Website at www.silverfox.org or www.silverfoxadvisors.com to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors and their businesses, as well as our great programs and community outreach endeavors.