Banking and Business: How Does a Business Owner Build a Relationship with a Bank?

Dec. 7, 2011 - PRLog -- On this edition of MBTV, host Randy Lennon and Keith Turner, President and CEO of Meridian Merchant Capital continue the conversation from last week moving into Banking and Business and how to achieve a long-term, personalized relationship with a bank.

http://www.youtube.com/watch?v=k0gtK1AcIn8

Turner, who joined the Royal Bank of Scotland when he was 17 years of age, has worked in all aspects of banking, all over the world.  Things have changed dramatically in banking over the years and there is simply more scrutiny now on both sides of the table.

“The world (and the economy) has changed immeasurably since those days,” explains Turner.  “Banks are now under more scrutiny, and they're scrutinizing their clients a lot more closely. If you want to maintain that relationship (like any relationship in your circle) you need to work at it.”

Communication is the key, as in most things in business, or life.  The challenge is that entrepreneurs and bankers don’t necessarily speak the same language.

“Bankers do not run businesses,” says Turner.  They don’t want to end up taking over your business.  “In fact, running a business is the worst possible circumstance for them, and that's why they so closely scrutinize your business. They want you to do well. They don't want you to be a problem.”

So it’s all about entrepreneurs providing their banker with the information that they require to make good decisions, but that information has to be in a form that bankers understand.  An entrepreneur may have a wonderful, growing, profitable business but if his accounting is not in order and he’s intimidated by his banker, his ability to access low cost bank lending will be inhibited.

One way to address the disconnect between banking and business is that the entrepreneur hire an intermediary to bridge the gap.  An investment banking firm like Meridian can access capital far beyond what the banks offer, in situations that are too risky for banks such as fast growth, mergers, acquisitions, and management buy-outs.  But Meridian can also help with banking and business relationships with basic bank financing or utilize cheaper bank money in concert with other forms of capital.

To contact Keith Turner or Randy Lennon at Meridian Merchant Capital go to http://www.meridiancanada.com

To view this weeks show, go to: http://MeridianBusiness.tv

Next week’s show:  

What is Equity Capital: How Do You Find Equity Partners

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