January 30, 2015
5 Benefits to Building a Relationship with your Maryland Loan Officer
Small business owners interested in securing a commercial loan can expect to receive advice from numerous professionals. Of nearly all advice received, however, none is as undervalued and underemphasized as the need to build a relationship with your loan officer.
While it may seem insignificant, it can drastically impact the direction and speed at which your company grows. Here are five great reasons to get to know your loan officer and build a solid professional relationship with him and the bank he represents.
Small Business Advice
Loan officers at banks have seen it all, and after years of approving business loans and seeing the results, they know what works and what doesn’t. They’ve reviewed countless business plans, talked to scores of small business owners just like you, and have tracked loans from conception to loan to repayment.
In short, they can probably tell if your million dollar idea is a good one long before you put it into practice. Getting to know your loan officer gives you access to this pool of knowledge, and lets you rely on someone with broad and deep experience as a sounding board before committing resources to your plan.
A Loan Officer Acts as a Trusted Advisor
Getting help for your business can be tricky. Asking people for advice who have been with you from the beginning can give you answers that are clouded by proximity to your business.
Establishing a relationship with your loan officer allows you to build a comprehensive history with him that lets him offer help and advice with both a disinterested professionalism and a knowledge of where you are coming from.
Your bankers and loan officers can be privy to information that you might not want to share with competitors, or even friends who have their own businesses, and can use that information to offer better advice about the health of your company.
At smaller community banks the trust you build by having a relationship with your loan officer can be the difference between getting a small business loan or not, or getting terms favorable to you or not. At large commercial banks, however, establishing a rapport with your loan officer might not help too much due to big bank challenges such as far away decision making and red tape.
Referrals and Recommendations
A surprising number of business owners turn to their bankers and loan officers for suggestions on finding services they need. So when the next person asks your loan officer to recommend someone that does whatever it is that you do, you want your name to be at the top of his list.
Likewise, if your loan officer trusts and respects you, he is far more likely to give you good recommendations when you ask them about services you may need.
Your bankers and loan officers probably have first-hand knowledge of what is going on in your community when it comes to finances. They can often offer great advice about the direction your company should be moving in based on what the larger financial picture looks like.
They can also offer suggestions on ways to get there, and give tips on how to make the most of your loan, or how to solve countless other financial problems that can impact many new businesses..