11 reasons why you need to be friendly with banksBusinesses need good relationships to thrive. Before you get new customers, you need those who have known you and where you are coming from to stand by you. Patronage on one hand, you also need good relationships in order to properly finance the business.
To keep your business well-financed and always liquid at all times, financial institutions play key roles. You may not have the money you need to move your business forward but you can solve the cash problems if you talk to someone.
But talking to someone who doesn’t know you may not yield the desired result when you are in dire strait and earger. Consequetly, to make something happen. At best you may sound so desperate and thereby send a wrong signal to whoever you are talking to. The outcome of such desperate discussion may be disappointment and wasted time.
There are several fund providers but we are going to focus on the bank in this piece. Besides the individual opportunity to apply for fund from banks, there are of recent some attempts to provide intervention funds to stimulate some sectors of the economy. The fact is that not every business that is in dire need of the money will have access to it. Many entrepreneurs will be denied the money because of poor banking relationships.
Support or help works on trust: where trust is lacking it may be difficult for help to come. Financial support relies so much on trust but where your bank cannot really prove to know you, there is bound to be a snag when you sorely need the bank to be by your side.
You need to prepare ahead of time so that you don’t miss opportunities when they come your way. If you are an entrepreneur or you hope to become one in future, your attitude to banks and banking should not be negative. Though some banks are excessive in their activities (like my own bank at present annoyingly charging me for unsolicited sms meant to promote its products), you cannot close your eyes to the good side and benefits derivable from the banks. I will itemise in this piece eleven reasons why you should cultivate good relationship with banks.
1) The manner of relationship you have with a bank will influence whether the bank will readily be willing to support your business ideas with fund or not.
2) If you desire to grow your business and become a reputable brand, the time is coming that you cannot conduct certain business transactions without the use of banks.
3) If you wait until you need a bank before you open an account, you may not get what you are looking for at the time you need it. The best time to start the relationship is now when it seems you don’t really need the bank.
4) You cannot run away from some financial services in real wealth creation. Only banks can render most of these financial services.
5)Banking history is key information in international business relations. The embassies need it to approve your trips while some foreign business transactions may require your bank to say something about you.
6) Banks are not charity organisations that can treat funds in their custody as if it’s meant for charity (even charity organisations will establish the genuineness of your request before acceding to it), it is how long they have known you that will determine whether they will listen to you or not.
7) Integrity is a key factor in the relationship between you, your business and the bank of your choice. If you don’t make a move to build the goodwill, you may not enjoy it when you need to.
8) A good relationship will permit your bank to allow you temporary or short term financing by allowing you to overdraw your account balance to meet emergency financial needs. You may need this special request anytime, therefore it is better you start preparing for it today.
9) You don’t really know how huge your business may be tomorrow therefore you need to put in place necessary financial relationships that may help facilitate a brighter future.
10) It pays better to service your investment activities through funds in your bank account. Let your bank account be the interface.
11) You can only get needed support to easily execute your ideas when you have a relationship that starts before you start to pursue such ideas. Only financial institution that knows you that can easily assist you.
Source:
www.punchng.com/am-business/11-reasons-why-you-need-to-be-friendly-with-banks/
