Article by Roger Schlueter
Bankers for the most part do not share information about your business unless it is with a bank. They have a confidentiality toward other businesses, individuals and organizations but this does not apply to their bank and other banks that they may deal with. There are many situations that come up with bankers, and one of the most important, is that many of the bankers have worked with one another over the years. This creates a sort of Good Old Boy system as to, who knows who, in the banking industry. Most Bankers are also extremely loyal to their banks and the Banking Industry in General. It is sort of like when you are interviewed for a job, anything you say or refer to is used in the evaluation of your business and business management.
Many Businesses will create a bond with their Business Loan Banker but remember who is paying his salary, it is not you. Even though you may contribute income that may lead to paying the bankers salary. People know that an interview situation is very strict, anything you say may be used for you or against you. This is the same when talking to your banker. You and him may be good buddies but remember, he works for the bank and is loyal to the bank. The bank is loyal to you as long as they think you can pay your loan payments in a timely manor, and you are a good risk for future borrowing. If either of these change, then you, may be out the door.
There are bankers that will try to move companies with them if they move to another bank. The banker should still be loyal to his bank. Bankers that are more loyal to the business than to the bank they work for, may not rise as high in relation to their position at the bank as they would like to rise. Banks like company men and if you are a renegade they either think of you as a liability or as a loose cannon or both.
The best way to gauge this relationship is to remember who is paying the bankers salary or commission. If your company is paying the banker by his commission that he makes on you loans they that is great. I will say it takes a larger amount of loans to pay the salary of a Business Banker who may be making up to six figures and this figure does not include Benefits that could be up to half of his salary.
Most bankers are good guys and will be looking out for you. Just remember, it is just like in an interview, what you say can be used to benefit you or to Harm you, in the eyes of the Banker and his Bank. Good Economic Times usually are very beneficial to the borrower but in Bad Economic Times companies are booted out of banks every day!
Please address any questions to this Blog or my email at roger@rogerschlueter.com , or go to my webpage at schlueterfinancial.com for additional contact information.
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