Borrowing, Banks & Bastards

‘They don’t understand our business!’

‘When we’re having a tough time, where are they, when we need them most?’ 

‘Relationship Manager! Where’s the relationship, it’s one sided in their favour!’

"A bank is a place that will lend you money if you can prove that you don't need it"Bob Hope

These and similar, often disparaging comments about Bank Managers are made on a regular basis by some Directors of SME owner managed business when they become frustrated with their banking relationships.

The relationship with your Bank Manager is no different from any other business relationship, it needs time, energy and commitment to build into a strong & lasting connection. As with your best customer relationships, where you both understand each other, have a clear picture of what the future looks like, along with plans on how to get there; the relationship with your Bank Manager should be no different.

To support your business through the good times and the bad times, your Bank Manager needs a regular flow of financial information such as reliable management accounts, current cashflow forecasts & a good understanding of your business goals & strategy. Without that, your Bank Manager will struggle to fight your corner with his Credit Committee when it comes to renewing or extending banking facilities.

For Owner Managers the relationship with their bank is just another plate to keep spinning. Providing financial information, keeping the Bank Manager in the loop about the progress of the business takes time and is repeatedly pushed to the bottom of a busy ‘to do list’ often until it is too late.

However, delivering regular management accounts, reliable financial forecasts, dependable cashflow forecasts and holding regular meetings with the bank are all second nature to a seasoned Finance Director. As a result, while there are several reasons for a business to engage the services of a Part Time FD, perhaps one of the most important is for help with managing your banking relationships.

Of course, a Part Time Finance Director cannot promise that you’ll become Bosom Buddies with your Bank Manager but they can help make them become less of a Bastard!