Top Tips from Morton Fraser - Improving your relationship with your bank

Establishing and maintaining good relationships with your bank can be essential to ensuring efficient project delivery on your estate.  Whilst traditionally bankers remained in post for many years, recent changes in the industry have lead to a far higher turnover of personnel.

As with your local planners [insert link to factsheet], it is therefore prudent to ensure you maintain regular contact with your banking teams to ensure that you are up to date with who is in post and that they understand you, your estate and your ambitions.

Follow our Top Tips to stay well positioned:

  1. Know your documents: read all of your loan agreements and understand key details such as when they are to be repaid etc. 
  2. Do not miss any crucial timescales: for example, the production of management accounts within set timescales in your loan agreement.
  3. Speak with your Bank regularly about how business is going: they don’t like surprises.
  4. Have some leads with other lenders: it pays to network and have ”warm leads”.
  5. Make sure you understand the whole of your loan agreement: if you don’t, speak to a lawyer.  
  6. Attend ‘special focus’ forums run by the banks: ask for an invite.
  7. Have a solution to any change in your business: and make sure to prepare this before you begin talks.
  8. Let the Bank know of any impending change in your business: however drastic or minor this might be. 
  9. Have you any other assets that you can offer as security?
  10. Think of guarantees: Banks like to see Directors personally underpinning their company’s debt – it shows commitment.