Bankers, first of all, are lenders – not investors. So, their business lending approach is the initial screen through which you will have to pass. More on that in a minute.
Before you open that first checking account, you have an opportunity to build a relationship at a bank with people (emphasis: plural) you like. But with whom? Well, probably not with simply the deposit-side people who will open your checking account.
Banks have commercial lending groups who oversee the lending process. Eventually, these are the people who will make a lot of difference to you. (And, by the way, this isn’t a task you delegate to your financial manager. The eventual banking relationship needs to be with you.)
The lender you want will be someone who understands your business, and who has had experience lending to other businesses with the same banking characteristics you are likely to have. They will have the ability to be responsive on additional requests or needs that you will have as your business grows.
So, as you begin to build this relationship, you will want to profile lenders based on their experience and their references from others who have worked with them.
To do that intelligently, understand how a bank is structured, how much their own lending limits are, what approvals are required and at what levels, and how easy it is for you to meet these people.
Who is on their board? Bank boards, especially in smaller, “community” banks, use boards to build community relationships and meet people in the community who may be, or may become, good customers. Look at their directors. Do you know any of them? If you do, call them and ask these questions.
Are there entrepreneurs among them? If you don’t know any of them, a call to one of them whose bio indicates they may understand something about what you are doing will be valuable.
Do they build long term relationships with people and companies who are not yet ready to borrow? Find this out by making an appointment with a commercial lender and talk to them about your aspirations. See how they react. Do this at least twice – three times would be better.
Ask about downside situations, as well. How have they handled situations that have not gone as well as they had hoped?
What criteria do they look for to screen potential customers?
Anticipate how much you might need, for what, and when. Be prepared to discuss their lending practices as they relate to your future needs. In other words, have a discussion about what those lending standards are that they would apply to your request for a loan. Manage your business accordingly.
Before you do any of that, look at this link to the Risk Management Association website and read as much as you can about how banks use RMA services for risk assessment. Tell your prospective banker what you’ve learned and ask for his help in learning more.
Then, open that first deposit account with someone with whom you hope to have a longer term relationship. Then monitor the relationship; update them a couple of times a year on how you are doing.