September 2009, Business Fleet - Feature
How to Be Your Lender’s Best Customer
In this new economy, banks and lessors want more assurances than ever that your business is healthy. Having an answer to these questions will help keep your credit lines safe.
By Tim Yopp and Mark Eckhaus
Does the bank know how much business you do with them? Do you?
If the bank is handling your merchant account, do they know how much money your company runs through them?
If you require your employees to have accounts at your bank for direct deposit, the bank has those accounts because of you. Consider that all of your employees' salaries for the year are money flowing through your bank. Your employees will also use the bank for personal loans, car loans, mortgages, credit cards and more.
The same can be said for corporate credit cards and loans, and the consumer loan program set up for people buying your fleet units. When you add it up, it equals a lot of money. Maybe it is your bank's turn to spring for lunch.
Does your lender know how great you are doing?
Is your business expanding? Have you signed a new client or sponsored a local charity event? Good news! Let your bank know, let your employees know. Email is your friend!
If you're with a local bank, let your customers and your bank know how much you buy within the community.
What are you doing to make your bank a good customer?
Do you offer discounts to your bank's employees and their customers for your services? How about a "First National Bank" Special? Look at cross-promotional opportunities. Whatever your company's business-landscaping, insurance, plumbing, food service-you have goods and services that your bank's employees and customers want.
Can you position yourself so the bank will introduce you to a new corporate customer? If they have a "customer spotlight," can you be one of the companies they shine the light on?
Now that you have answered all these questions, there is one last one:
Is this the right lender for you?
So you have a plan. You know your loan needs for the next 12 months. You know how much business you give your bank and you know what they offer in return. Your financial package is up-to-date, and you have a process that keeps it up-to-date. Now is a good time to see what other banks and leasing companies might offer.
But remember, if you have a long-term relationship with your lender, you must weigh carefully whether getting a quarter point lower on your loan rate from a new bank is really worth it. BF
Mark Eckhaus (Meckhaus@aol.com) is CEO of Eckhaus Fleet LLC, one of the largest independent fleet distributors representing Hyundai, Suzuki, Toyota and other manufacturers to the corporate fleet and rental car industries. Mark is a principal in several new car dealerships. Tim Yopp (tim@eckhausfleet.com) is chief technology officer of Eckhaus Fleet LLC.