Your business is successful, but you know you need “more” to grow. More space, more employees … and more money. When you approach your banker with requests, you also need more than the right paperwork and a freshly pressed dress shirt. How you communicate your needs to your banker can have a big effect on the end results.

Faux Phrases

Too often, small-business owners say one thing, and their banks hear something else entirely. Far from being lost in translation, certain phrases lose their meaning over time. We’re all familiar with “buzzwords,” and while no one is immune to including jargon in their vocabulary, it’s in the best interest of all small-business owners to avoid using these expressions. Using buzzwords makes your business plan look like all the dozens of others that get turned down every day.

Lost in Translation

Established businesses wanting to expand or offer new products or services should avoid stating their case with the phrase “I’ve never missed a payment.” While the intention behind this statement is “I’m a good customer,” your banker is hearing “I’m doing exactly what a customer is supposed to be doing.” It’s asking to be rewarded for expected behavior.

Similarly, transaction volume in a deposit account—no matter the amount—is not an indication of an exceptional bank relationship. When bankers hear the words “I’ve run a lot of money through my account in the last year,” the intended message is “I’ve given you lots of business,” but the reality is that this kind of transaction churn is more of an expense to a bank than a benefit.

Idle funds, such as a minimum balance or a stash in a money market account, represent funds the bank can lend to other customers. So instead, small-business owners should highlight increased profits and accumulated savings. If you’ve increased your overall deposit balance, that is something you can brag about.

Effective Communications

Can you guess what is the single most frequent communication error between small-business owners and bankers? The answer: a lack thereof. As in any relationship, frequent and honest communication can make all the difference.

It’s not unusual for business owners to meet with several banks and bankers before making their first loan request, so remember that hard work and carry it forward. If the thought of contacting your banker with an update makes you uneasy, then you may want to ask yourself if you’re doing business with the wrong bank (or wrong banker).

By maintaining a steady line of communication, business owners keep the door to opportunity open for future requests, too. Add your bank to your newsletter or marketing mailing list. Inform them of changes, good and bad. This candid communication lays proper groundwork if you find yourself in a bind. When your banker knows and understands your business, you may find that he or she is more likely to be able to make referrals or connections that can help you grow your business.