Top Tips for Creating a Successful Partnership with Your Lender

First Financial Bank

Get insights into how client relationships and lending practices connect from some of our lending leaders.

A professional relationship between your business and ours is inherent in the lending process. But having that personal relationship between you and your lender can make it even better. Recently, we sat down with two of our experienced First Financial Bank lending advisors, Scott Walker and Brad Ogletree, to learn what happens and how client relationships interact with the lending process. Together, we’ve put together these insights and tips for you.

Tip 1: Help the lender understand who you are as a person

There are many details that are provided when you apply for a business loan, including your business plan and financial information. That’s great, but it’s not the complete story. Who are you, the borrower, as a person? Though somewhat subjective, there are things you can provide the lender that will be “green flags” for supporting your loan application:

    • What is your history, personally and professionally? The more experience you have in the industry and your reasoning for why you are looking to start, build, or expand this type of business can show us what you bring to the table. “I’ve been a banker for 32 years. If I tried to take out a loan to become a mechanic with my own repair shop, I would need to provide a lot more information than just a business plan for it to make sense. The more details you provide to highlight the expertise and experience you bring to the business helps to illustrate why you are more likely to succeed,” says Scott Walker.

    • How do you handle your personal finances? If your personal finances have been well managed over the years, as demonstrated by a solid credit score and appropriate debt repayment, it reinforces the impression you would do the same for your business.

    • Have you done your due diligence in the borrowing/lending process? In addition to your research into the business and market, we want to see that you are an informed consumer with intelligent questions about the loan process. Again, this demonstrates you are actively engaged in being a good partner.

By rounding out your story with the above items, you can reduce the risk of creating “red flags” by clarifying and enlightening your lender with “green flag” information.

Tip 2: Communication is key, especially when the industry struggles

It can be challenging to anticipate what will happen in the marketplace and financial services: Will the interest rates increase or decrease? What is the market opportunity for your business based on supply chain and tariffs? Are there opportunities to enhance or protect our financial standing based on what is happening?

Staying in touch with your lender is important to help manage risk and leverage opportunity. Communicating early and often can help you understand what is happening and what can be done to handle it. The information you provide can help us better guide you through the process and any adjustments that may need to occur if changes are needed.

It’s important for both sides of the relationship to be transparent and honest with each other. Your loan officer may not have all the answers for you at the time – and you may have challenges you need to disclose. According to Brad Ogletree, “A year ago, bankers were anticipating a lowering in the interest rates, but they have not changed. If another lender is telling you what the rate will be in the future, they are not being truthful.” By being upfront with each other and not trying to gloss over issues, we can use the information we do have to get the best outcomes possible for you.

Tip 3: Technology can sometimes be ‘a lot’, but it greatly helps us help you

Computers, cell phones, and the software used can sometimes feel intrusive. The good news is that technology has reinvented the lending industry:

  • Internal systems have improved efficiency in financial analysis and loan committee preparations. With application and supporting documentation already in a database, the information can be organized and distributed immediately to the appropriate teams and individuals. Lowering the risk of something falling through the cracks or getting lost in transit. The right people get the information – and you get the answers you need.
  • Enhanced communication options have vastly improved the bank team’s ability to collaborate. Lending is a team effort; having each team member working together in a way that connects them, captures the messages, assigns tasks, and provides an auditable trail of communications is a huge step forward in loan processing.
  • Mobile phones have revolutionized client communication and accessibility. Yes, we text! Not only can we have a voice conversation wherever we may be, but we can also text back and forth to answer your questions, give you an update, or coordinate a next step. The great news is that you can send us a text when you have a question – and we’ll often answer right away. Sometimes, if we are in a meeting or on a call with another client, it may be after that when we call back. Mobile phones and texting have often extended our connections beyond business hours – but we do try to give our families most of our attention during that time, so please understand if you don’t hear from us until the next morning (or Monday, if over the weekend). It’s always great to text with you and get the chance to connect even more.

Tip 4: The inside scoop on what we tell new lenders about working with clients

Our team members are well known for establishing open, honest, and productive relationships with clients. When someone new joins our lending team, our experienced professionals share the following advice to help them successfully represent First Financial Bank and partner well with our clients:

  • Make lending decisions with your brain, not your heart. You may meet a potential client who you like based on their personality. However, the information they provide and your evaluation based on your skills help determine if they can succeed in their business plans. No one wins if they fail.
  • It’s okay not to know everything; leverage experienced colleagues. There is no way to know everything when starting as a new lender. Those who have been with us longer can help you answer the questions you’ve received from clients. It’s better to say, “Let me check on that for you,” than provide the wrong information. Everyone has been new, and they’ll understand you want to get it right for them.
  • Be transparent about economic uncertainties with clients. There has been a lot going on lately: Interest rate uncertainty and slower-than-expected rate decreases, fuel and oil price fluctuations, and tariff situations creating economic unknowns. If a client asks a question, be honest and tell them what is known – and what is impossible to know at this point.
  • Prioritize work-life balance and family commitments. We remind our team to take the time with their personal lives and families. This allows them to approach the work at First Financial Bank refreshed, refueled, and ready to go!

Our motto is “We’re in the business of YOU.” We hope these tips provide you with insight into how we work with you – and help you understand how much we value our relationship with you.

 

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