Home
>
Small Business
>
13 Steps to Protect Yourself from Your Bank

13 Steps to Protect Yourself from Your Bank

The success of your business is critically dependent on how well you negotiate and manage your financial partners. Banks, investors, credit cards and financial services companies work for you. Therefore, you need to be sure you are working together, understand the plans of each and have the best idea of what and how things will happen when times get tough.

It is very simply like dating, and you need to be acutely aware of how words, actions and contracts meld together to form a base for your business structure to build on.

1. Ask for resume of your loan officer and if a small community bank the resume(s) or work history of the principals. Banks have one of the fastest turn over rates and as the industry continues to consolidate, so people are moving fast. It's not always the bad ones that move on, there are actually good folks that get snapped up by the private sector. Know how often they move, and where to and where from. And, ultimately, if you can go with, assuming the relationship is good.

2. Ask to meet 2 to 3 levels up. Loan officer's boss, senior vice president of commercial lending and again, in small community banks, a principal. If your bank contact shows up missing, you have a critical issue that you most likely don't have the time to deal with now.

3. Ask for references of businesses within you range loan, and/or business type. If they won't give you the other companies' name, ask them to have their clients call you. Make sure they are similar in size, industry and financial requirements. Be prepared to ask tough and pointed questions to uncover the real types of people you are dealing with to determine what it will be like beyond the honeymoon stage.

4. Ask for their standings in state and federal regulator groups including FDIC. Be aware that in many cases it is against regulations for bank employees to tell you they are in trouble. Get the history and then follow up on the FDIC website and state banking authorities. These groups may ultimately decide what the bank can and can't do with account.

5. Ask what happens when times get tough. Blow up the bomb, talk about the worst case scenarios and get the reaction of how your bank will handle a takeover, regulatory change, or a late payment.

6. Request the financial intuitions' long term plans. Sell. Merger. Growth. The bank wants to know your long term plans and how they can be part of it. Shouldn't you know what they are planning on doing? If they are going to buy up other banks, or be bought? What happens to your great (or mediocre) bank relationship? Ask often and frequently where the banks see themselves going in the community and within their industry.

7. Draw up a close-out plan if you want to direct the process. If you hold special permits or plan to be involved with your company to the bitter end, figure out how that will be handled. Discuss and get agreements with your financial partners.

8. Invite Board of Directors to your business. Not only are they powerful allies with your bank they are often influential in the community. The more you develop the relationship, they more they can be aware and helpful in moving your business forward, in and outside the bank.

9. Sign any amendments to loan security agreements at the same time you enter into a loan relationship. Neither should be determined to be of more importance if you are going to create an equal and balance long term relationship. Nothing should be an additional or an oversight but one complete and equally negotiated agreement.

10. Request quarterly reports on changes within the bank. Read them and ask questions about what they mean to you and your business relationship.

11. Demand annual updates on areas that blend your business and your business services. Are they adding services to benefit you or cutting areas that will be vital to the growth, profitability and success of your business.

12. Recap all meetings and phone conversations in writing and copy supervisors in your company and at the bank. When times are good, you want every one to know it. And when you need help or relationship begin to gradually, or like a sudden summer storm, explode, you want your communication and your plans to be exacting, detailed and with a concise trail.

13. Continue to meet with other institutions and don't consolidate your business.

Margaret E. J. Broderick has an undergraduate in communications and an MBA in Strategic Marketing and Management. Her last company was a two-time Ernst and Young Entrepreneur of the Year Finalist. She is the author of Passion v. Arrogance: A Dana and Goliath Story of Wine Women & Wine, and continues to tour the country to educate audiences. She can be reached at http://www.passionpowerpress.com, or http://www.passionpowerpress.com

car service from Midway Burlington .. Lockport Chicago limo O’Hare

In The News:

Tech expert Kurt “CyberGuy" Knutsson says a malware app called SpyLend is posing as a financial tool, hitting 100,000-plus downloads.

Tech expert Kurt “CyberGuy" Knutsson says Clone Robotics’ Protoclone mimics humans with 1,000 muscles – too human for comfort.

Tech expert Kurt “CyberGuy" Knutsson urges you to use Apple’s App Privacy Report to see what your apps are really up to.

Tech expert Kurt “CyberGuy" Knutsson talks about how to smoothly transfer your data from an old laptop to a new one using cloud storage or external drives.

Kurt the CyberGuy offers tips to safeguard your personal information as scammers become more sophisticated with scam texts and other methods.

WeRide's unmanned electric delivery van, the Robovan W5, has 194 cubic feet of cargo space and can carry payloads up to about 2,205 pounds

Kurt the CyberGuy recommends deleting 16 browser extensions immediately in response to a report saying more than 3.2 million web users were affected by a security breach.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

A robotics firm in China claims a robot has performed the world's first humanoid robot front flip, which is significantly more difficult than a backflip.

A digital ID may be even more secure than a physical ID. Storing your driver's license in your Apple Wallet is an ideal solution for commuters.

A cybersecurity firm has shed some light on just how common tax scams have become. Kurt the CyberGuy offers his advice for how to protect your refund.

Lifesize Plans offers immersive walk-throughs that allow customers the opportunity to tour a home's design before construction actually begins.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

A man invested $4 million in bitcoin and lost it all with a single click when he was targeted by a vishing scam, which uses phone calls to trick people.

Expandable's Touchdown is a designer trailer that promises a luxury off-grid living experience and unfolds into a home in about 15 minutes.

Major employee screening company data breach affects 3.3 million people. Tech expert Kurt “CyberGuy" Knutsson explains what happened and gives five ways to protect your data.

Kurt “CyberGuy" Knutsson reveals mind-blowing tech that gives you sunlight on demand.

New malware "FrigidStealer" targets Mac computers. Tech expert Kurt “CyberGuy" Knutsson offers four ways to stay safe from infostealer malware.

Kurt “CyberGuy" Knutsson talks about how lab-grown muscles power a biohybrid hand for scalable prosthetics and research.

Reports of task scams have significantly risen in the past four years, according to the Federal Trade Commission. Kurt the CyberGuy offers some red flags.

iPhones have a hidden folder that eats up storage without you knowing it. Kurt the CyberGuy offers some tricks to free up storage on your device.

A recent ransomeware attack targeted Zacks, an American investment firm, and a cybercriminal claimed to have stolen records for millions of customers.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Researchers unveiled a new soft prosthetic hand that combines the natural coordination patterns of our fingers with the decoding of motoneuron activity in the spinal column.

Accidentally deleting a text message on your iPhone or iPad is not a problem if you still need the message. Apple has a built-in way to recover it.

13 Steps to Protect Yourself from Your Bank

Small Business