The "traditional" rules of banking relationships and the 5 C's of credit will be explored. Be aware of changes sweeping through the small business lending community in North America. New rules apply to small business financing game. If your business doesn't understand the new game, you could be left out in the cold.
Relationship banking has been the cornerstone of small business financing. A good relationship between the business owners and bankers allows for the free exchange of knowledge and the ability to meet the needs of business. A banker informed of your business can offer practical advice on financial matters.
Setting up a relationship with your banker begins with following a few tips:
Relationships can be beneficial when it comes time to apply for a loan or large credit line. Remember, banks are in business and all companies need to assess risk and make profits. In the process of loan approval, banks consider the 5 C's of credit.
