Maintain your old Siemens Hipath system

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 passionbooks@aol.com

In The News:

21 killed as pipeline explodes after fuel theft
Sat, 19 Jan 2019 03:08:00 +0000
At least 21 people have died and 71 others injured after a pipeline breached by fuel thieves exploded triggering a massive fire in central Mexico.

Bangkok pollution 'at crisis level' as planes trigger rain
Fri, 18 Jan 2019 23:34:00 +0000
Doctors in Thailand are warning Bangkok could face a pollution health crisis if it does not address its smog problem.

Ex-president turns pizza delivery man amid US shutdown
Sat, 19 Jan 2019 09:34:00 +0000
Former US president George W Bush tried his hand at delivering pizza to treat unpaid Secret Service staff amid the ongoing government shutdown.

From jail, crime bosses blow up bridges and set petrol stations on fire
Fri, 18 Jan 2019 14:03:00 +0000
Petrol stations set alight, bridges blown up and police stations torched are just a few of the ways crime bosses in Brazil are flexing their muscles from within the confines of their prison walls.

Police's mission to 'blitz' gang-controlled areas of dangerous city
Fri, 18 Jan 2019 16:25:00 +0000




tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

The Skills Gap: It Pays to Use Experts

By outsourcing to skilled professionals you'll be able to grow... Read More

Are You Really the Boss in Your Own Business?

I recently met with a very successful magazine publisher who... Read More

Financial Dose for Business

The goals of businesses have undergone much evolution from the... Read More

Quality Controls for Franchising Companies Sample Outline

Quality control in franchising companies is paramount and all franchising... Read More

Definition of Security: Small Business Owner

Yes, that IS security when nobody can downsize you because... Read More

Collection Agency Selection

Frankly, given the legal and regulatory requirements involved in attempting... Read More

Does Your Business Need a Toll-Free 800 Number?

Should your business have a toll free number for customers... Read More

Is Your Business Legally Prepared?

It is imperative to have your business legally prepared. How... Read More

Do You Make These 7 Deadly Cash Flow Mistakes?

Managing cash flow is every small business owner's most important... Read More

Entrepreneurs Go Virtual!

With the massive explosion of start-ups and home businesses developing,... Read More

Challenging the Gospel of Growth -- Must Business Grow to Survive?

A cherished business doctrine is that growth must be a... Read More

5 Good Reasons a Self-Employed Professional Should Take Vacation

So you think you're not justified in taking time away... Read More

How to Find a Microenterprise Loan for Your Business

If you're looking for start-up capital for your business, but... Read More

How to Use Graphs and Charts in Your Business Plan

Many people ask how many graphs or charts they should... Read More

The Hidden Treasure in Your Business

I started working with another new client last week. He... Read More

How to Create an Employee Manual

Large corporations use employee manuals to both educate employees about... Read More

Technology Community Helps SMBs Focus on Their Core Business

If you're starting your own business or currently work for... Read More

Understanding Franchise Releationships in a Franchised Business

Now that you have invested your time, energy and money... Read More

How Disabled Veterans Can Win Government Contracts

The Service-Disabled Veteran-Owned Small Businesses (SDVOSB) is a program that... Read More

Australian Workplace Agreements - How They Work For You

The employer / employee relations environment has been constantly evolving... Read More

Why Does a Business Fail and What Can You Do to Stop It?

I believe the number one reason why a business will... Read More

Do You Love Food? - Then Maybe Opening a Restaurant is Not Such a Crazy Idea

The restaurant industry in the United States employs an estimated... Read More

Local Government Relations for Small Business

Most small businesses simply go about their daily business and... Read More

How to Find A Group that Needs Speakers

How do you find groups that are in need of... Read More

What Happened to the Money and Freedom?

Ask anyone trapped in a cubical about their entrepreneurial dream... Read More