Comments on: Bankers: love ’em or hate ’em. They may affect your future.

By: Allen Clason

Allen Clason — Sat, 24 Feb 2018 00:00:46 +0000

Dave, excellent article with an outstanding word toward communication. And since I know Don, your reply is wonderful. This is not to minimize the other quality replies.

By: Michael O'Daniel

Michael O'Daniel — Tue, 20 Feb 2018 21:31:07 +0000

One thing that wasn’t mentioned in this post, which I would hope anyone reading it knows anyway, is that debt takes precedence over equity. If you have loans or lines of credit with your bank, all the more reason to be proactive about maintaining a close relationship. A bank can choose to shut down / take over your business even if all the other indicators are that the business is in good shape. You can be particularly vulnerable to this happening when a smaller bank is acquired by a larger one, or when there are managerial or policy changes within the bank itself. I personally experienced a situation where a debtor bank executed a “friendly” takeover of a privately held company, wiped out all the investors and creditors, and re-opened the exact same business under a different name. But that’s another story for another time.

By: Don Kasle

Don Kasle — Tue, 20 Feb 2018 19:48:04 +0000

Dave — You knew I would have to respond to you post given my 30+ years in commercial banking and as a 3-time bank CEO, as well as having sat on 6 different bank boards of directors.
You are (once again) spot on with your comments.
The real key in building a relationship with a bank is best described in 3 words:
1 = Communication
2 = Communication
3 = Communication
Back in my early years as a commercial loan officer, I once had a company CEO who had a small checking account with us, come to me and ask if he could share his financials — even though he did not want to borrow any money at that time. I told him “sure” and we met for over an hour going though them. 6 months later he came back and did the same thing. This went on for 2 years and then one day he came in — with financials in hand — and said, “I’m here to borrow money. Can you help me?” I had watched and learned about his company over the 2 previous years. I understood his company, knew all about his management, understood his customers and the various vulnerabilities that the company had. I was very knowledgeable as he had prepared me so well — by over-communicating with frequency and detail. I was able to approve him the same day and he went on to be a GREAT borrowing customer with the bank for many, many years. I have often told that story in explaining to entrepreneurs how to establish a sold banking relationship.

By: Ida Juliana

Ida Juliana — Tue, 20 Feb 2018 18:08:04 +0000

I love the article Dave and the importance of establishing a good banking relationship with the banker. As a Business Relationship Manager (also going on my 30th year in banking altogether), I have had the opportunities to help and watch companies go through growing pains. I am also the 1st stage “workout” banker before the actual workout.. :). At this stage, open communications from the client makes my job easy to fight for their business to continue good solid relationship with the bank. We understand companies go through rough times, we just need to understand why to help offer solutions and alternatives. We conduct as much qualitative analysis as much as quantitative. Sometimes its not always the numbers…we like to drill down behind it. We are here to partner and help businesses. Given banking, like anything other industry, has become overly competitive, what differentiate banks are the relationship bankers have with their clients.
Thanks Dave!

By: Dave Berkus

Dave Berkus — Tue, 20 Feb 2018 17:39:38 +0000

Readers,
John Huston (see comment above) is too modest. A bank president during his career, John became the penultimate angel investment guru in his second career and has created more important teaching materials and performed more teaching events than most any individual anywhere. (With mutual nods to Bill Payne, the Angel King.) Thanks John for your comment. See you in Boston!
Dave

By: John Huston

John Huston — Tue, 20 Feb 2018 17:13:17 +0000

You may recall that I squandered the first 30 years of my business career in commercial banking, Dave. I loved your comments! Hope to see you in Boston……Cheers, J.