Having strong relationships with your lenders is essential for many reasons. A working relationship with those who have lent you money can help your small business access better rates or more funding down the line or help you restructure or repay loans if your business ever needs it.
However, these strong relationships with lenders take work. Here are a few tips on maintaining a healthy working relationship, so your business and lender can mutually benefit from working together.
1. Invest in the Relationship
We all like to work with people we know, like, and trust—this a the difference between working relationships and really beneficial working relationships. You stand to benefit by getting to know the people investing in your company.
Having a personal connection with your lenders, or at least your representative at the firm, will allow you to get more funding next time or have your rep vouch for you. These relationships can also lead to networking and introductions with others that can help your business in other ways.
2. Share the Good News
As a small business owner, we know you’re busy with all the many tasks that come up during your average day. However, keeping in touch with the people who have invested in your business helps make lenders more emotionally invested in your business, perhaps eventually more monetarily.
Keep a short journal throughout the week of daily operational goings-on and things that have gone well. Relay this news to your investors or lenders once a week, and they will feel kept in the loop and happy.
3. Share Your Struggles
When your business is struggling, there’s no shame in sharing this with your investor. Being able to tell them that you’re having a difficult time with one thing or another shows honesty, transparency, and a sense of goodwill. You are a team player.
As a small business owner, you are bogged down with the business’s day-to-day, but reaching out to your lenders or investors for advice in tackling a problem can lead to a broader solution pool.
In conclusion, the best ways to foster a great relationship with your investors or lenders is to connect on more than just business, communicate your wins often, and not be ashamed to share your struggles.
Capital Quickly is happy to have created long-lasting working relationships with many of the businesses in many industries we’ve helped fund. When a company we’ve funded sometimes ran into trouble, our in-depth knowledge of the industry and our long list of happy clients have allowed us to offer solutions and networking referrals to those businesses.
Become a member of the Capital Quickly client pool today and benefit from our attentive, diligent merchant reps and unparalleled funding options for your business.