My wife and I read an excellent marriage study by Dr. Emerson Eggerichs, Love & Respect: The Love She Most Desires; The Respect He Desperately Needs. The relationship between a borrower and lender can be similar to a marriage relationship. The next several blog posts will cover each of the following relationship keys adapted to borrowing in more detail but here’s a short description.
- Keep Your Lender Close: Your banking relationship will thrive with personal contact with your lender. It is helpful for the bank to know you by face and name.
- Be Open and Honest: Fuller disclosure can foster a harmonious relationship with your lender and better dialogue if problems appear. Bad news doesn’t get better with time.
- Cultivate Mutual Understanding: Get the perspective of the lender on key issues. A lack of perspective can cause a frustrating negotiation process and unrealistic expectations.
- Broker Peace: Be careful about drawing battle lines too quickly. A good agreement has neither side getting everything they want and both think they left something on the table.
- Be Loyal to your Bank: Banks love customers that provide ancillary business and associated profits. Expand your profitability to the bank and you may improve your chances of getting better terms and pricing on all your banking products.
- Promote Your Banker: Compliment your banker’s great service both in private and public. Make an introduction of your business associates to your banker.
The means to have a productive borrowing relationship are in your hands. The next several blog posts will cover each of these relationship keys in more detail.