How to Build a Relationship with Your Bank or Lender in 2025?
If you run a small business, you’ve likely heard advice about how crucial it is to establish a good relationship with your bank or lender. However, when you step into a bank, you might only see a few tellers and wonder who you should talk to about your business needs.
But what does building a relationship with your lender actually involve? Why is it important? And most importantly, how do you get started?
Here’s a practical guide, brought to you by Successful Funds and the National Bankers Association’s Innovation Council, to help small business owners streamline their journey to success.
Why Are Relationships with Financial Institutions So Important?
Think of your experience in school—you started with the basics and advanced step by step. Business lending works in a similar way. When you first open a business account, it’s just the beginning. As your business grows, you may need a credit card, a small loan, or perhaps a line of credit.
Having a solid history with a bank or lender can make this progression much smoother. It also gives you access to expert advice. Whether you need funds to cover working capital, refinance debt, purchase equipment, or expand your business, a trusted lender can guide you to the right financial products.
Not all banks or lenders offer the same services, so it’s crucial to have someone who understands your needs and goals. They can also help you prepare the necessary documents, ensuring you’re ready when the time comes to secure funding.
Melanee Woodard, Vice President of Marketing at Industrial Bank, shares her insights: “When customers have a trusting relationship, they often follow branch managers if they move. They value working with someone who knows them and their business. A great relationship professional can help identify when a business is ready for a loan—or if not, they’ll explain what steps to take to get there.”
How to Find the Right Lender or Bank Representative?
The first step is knowing who to approach. While bank tellers are essential, they typically aren’t the best resource for your business needs. Instead, look for titles like “Business Development Officer” or “Business Development Representative.” Branch managers and customer relations managers can also be excellent points of contact.
Keep in mind that business development professionals aren’t always based in the branch. With the rise of online lenders and fintech companies, in-person locations may be less common. However, these professionals actively seek to connect with small business owners. You’re likely to find them at community events, expos, or networking sessions—especially if their institution sponsors the event.
If a lender isn’t present in your community or doesn’t prioritize connecting with local business owners, it may be worth considering another institution. Building a successful relationship starts with choosing a lender that aligns with your values and needs.
How to Evaluate If a Lender Is Right for You?
When you build a relationship with a lender, it’s more than just working with one individual—it’s about trusting the institution as a whole. Selecting a lender that can support your business through every stage of growth saves time and ensures continuity.
Here are some questions to consider:
- Are they active in your community? Do they sponsor local events or provide resources for small businesses?
- Do they offer a variety of financial products? Can they support you as your needs evolve?
- Do they leverage technology? Do they combine digital tools, like online applications, with personalized customer service?
The Role of Technology in Building Relationships
As financial technology evolves, it’s reshaping the way businesses interact with lenders. While technology might seem impersonal, it can actually strengthen relationships by making financial services more accessible.
CEO of Successful Funds, highlights this shift: “Decades ago, we knew customers didn’t always want to visit a bank branch. Today, their kids or grandkids might never step foot in one. We have to meet customers where they are.”
For instance, secure online portals let you upload documents and sign applications digitally, eliminating the need for in-person visits during business hours. This is especially helpful for small business owners who are busy managing their operations.
Conclusion
Building a strong relationship with your bank or lender requires effort, but it’s an investment in your business’s future. By choosing the right institution and nurturing the partnership, you gain a trusted ally who can help you navigate financial challenges and opportunities.
Start today, and set your business up for greater flexibility and success.
FAQs about How to Build a Relationship with Your Bank or Lender?
- Why is building a relationship with my bank or lender important for my business?
Developing a strong relationship with your bank or lender helps you access tailored financial advice and easier approval for loans as your business grows. It ensures you have a trusted partner who understands your financial needs.
- What is the first step to building a relationship with my lender?
Start by identifying the right person to speak with, such as a Business Development Officer, Branch Manager, or Customer Relations Manager. Reach out and introduce your business to establish a connection.
- What are the benefits of having a consistent relationship with one financial institution?
A consistent relationship saves time and provides continuity. The lender will already know your financial history, making it easier to access new products or services as your needs evolve.
- How do I find the right lender or bank representative for my business?
Look for professionals with titles like “Business Development Officer” or attend small business events and expos. Representatives from banks and lenders often participate in these events to connect with business owners.
- What should I consider when choosing a lender for my small business?
Choose a lender that is active in your community, offers a variety of financial products, and incorporates technology for convenience while providing personalized service.
- How can technology help strengthen my relationship with a lender?
Technology allows for secure online document submissions, digital loan applications, and easier communication. This ensures faster processes and eliminates the need for in-person visits, saving time for busy business owners.
- What documents should I prepare before meeting with a lender?
Financial statements, tax returns, business plans, and credit reports are commonly required. Your lender can guide you on what’s necessary based on the financial product you’re seeking.
- How can I determine if my business is ready for a loan?
A lender or business development professional can assess your readiness by reviewing your financial situation. They may provide feedback on steps to improve your eligibility if you’re not yet prepared.
- What are some warning signs that a lender may not be the right fit for my business?
If the lender lacks community involvement, offers limited financial products, or is difficult to contact, it may be a sign to look elsewhere for a better fit.
- Can I switch lenders if my current one isn’t meeting my needs?
Yes, you can switch lenders at any time. However, maintaining a long-term relationship with a supportive institution is ideal for consistent support and streamlined financial services.
Final Thoughts:
Building a strong relationship with your bank or lender is essential for the long-term success and growth of your small business. It’s more than just securing financing—it’s about having a trusted partner who understands your needs and can guide you through financial decisions. Whether you’re starting with a business account or looking to expand, the right lender can offer valuable advice, resources, and financial products that align with your goals.
Remember, choosing the right lender is a crucial step. Look for one that offers personalized service, is involved in your community, and uses technology to streamline processes for convenience. By being proactive and nurturing this relationship, you’ll position your business for success, greater financial flexibility, and peace of mind.
So, take the time to find the right fit, and invest in building that connection. The benefits will pay off as your business evolves and grows over time.