In this industry and this era, there really is no choosing the right bank or the right banker over the long-term. If you want the best odds of getting the best results for you and your business, then choose banks and bankers on a case-by-case basis. There are a lot of exceptionally good people who work in lending within banks. However, virtually none of these people make policy decisions. None of these people unilaterally decide if you get your loan and on what terms. Banks have loan portfolios to balance and protect. Banks change the types of loans they make and people and industries they lend to based on the needs of their portfolio and the broader exposures of their bank…and that’s the way it should be. The banks look out for themselves just as you need to look out for yourself.
While advertising about “relationship” banking is warm and fuzzy, the warm and fuzzy part is usually more for the bank than you. Advertising executives in nice offices in beautiful skyscrapers work very hard on the warm and fuzzy campaigns, so it’s important for you to make your decisions objectively.
The primary tool for protecting consumer interest has always been a competitive market place. No one works harder when they don’t have to compete. Hence, when you’re looking for a bank (or any other vendor), make sure the bank understands that they have competition.
Now, here’s the good news. Having a long-term banking relationship and making banks compete for your business are not mutually exclusive conditions. Your bank becomes your bank by winning your business the first time. That bank continues to be your bank when they continue to outperform their competition. For example, a bank sells you a home mortgage (“gives you a loan for your house”). They have the best terms, and that’s great. They have earned the chance to get the first call when you need a business loan, car loan, credit card…etc. The minute the bank thinks they earned the “only” call instead of the “first” is when you’ll start losing ground.
A good bank and good banker can prove to be very valuable to you and your early education company, but the bank is not your business partner. They are a vendor to you. Concisely, make them complete to ensure your best interests.
I hope this information is helpful to you. Make sure you check out out other blog posts on buying a childcare company or school.
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